SEC Muni enforcement chief offers her views on Municipalities Continuing Disclosure Cooperation initiative (MCDC)

Abstract

Purpose

To explain the current status of the SEC’s year-old Municipalities Continuing Disclosure Cooperation (MCDC) initiative, which encourages municipal securities issuers, borrowers, and underwriters to self-report possible securities law violations related to inaccurate representations in offering documents concerning an issuer’s prior continuing disclosure compliance.

Design/methodology/approach

Discusses the purpose of the MCDC, recent remarks by the chief of the SEC’s Municipal Securities and Public Pensions Unit, the SEC’s first cease-and-desist order, and the independent consultant compliance review required by MCDC settlement terms. Recommends how an MCDC self-reporter should respond to a call from the SEC.

Findings

Thus far, the SEC has provided little detail regarding the MCDC enforcement process. Members of the SEC enforcement staff have said that underwriter MCDC cease-and-desist orders will be announced in the “coming months” and that issuers will not be named in these enforcement actions.

Originality/value

Practical guidance from experienced financial services lawyers.

Citation

Goldberger, M.N., Grugan, J.C., Patterson, B.D., Rhodes, W.C. and Stanley, T.N. (2015), "SEC Muni enforcement chief offers her views on Municipalities Continuing Disclosure Cooperation initiative (MCDC)", Journal of Investment Compliance, Vol. 16 No. 2, pp. 33-34. https://doi.org/10.1108/JOIC-04-2015-0021