AGENCY: Securities and Exchange Commission
ACTION: Final Rule
SUMMARY: The Securities and Exchange Commission ("SEC" or "Commission") is adopting amendments to Rule 15c2-12 under the Securities Exchange Act of 1934 ("Exchange Act") to deter fraud and manipulation in the municipal securities market by prohibiting the underwriting and subsequent recommendation of securities for which adequate information is not available. The amendments prohibit a broker, dealer, or municipal securities dealer ("Participating Underwriter") from purchasing or selling municipal securities unless the Participating Underwriter has reasonably determined that an issuer of municipal securities or an obligated person has undertaken in a written agreement or contract for the benefit of holders of such securities to provide certain annual financial information and event notices to various information repositories; and prohibit a broker, dealer, or municipal securities dealer from recommending the purchase or sale of a municipal security unless it has procedures in place that provide reasonable assurance that it will receive promptly any event notices with respect to that security.
DATES: Effective Date: This rule is effective on July 3, 1995 except for 240.15c2-12(c) which is effective on January 1, 1996.
Compliance Date: 240.15c2-12(b)(5)(i)(A) and 240.15c2-12(b)(5)(i)(B) shall not apply with respect to fiscal years ending prior to January 1, 1996; and 240.15c2-12(d)(2)(ii) and 240.15c2-12(d)(2)(iii) shall not apply to an Offering of municipal securities commencing prior to January 1, 1996.
FOR FURTHER INFORMATION CONTACT: Catherine McGuire, Chief Counsel, Janet W. Russell-Hunter, Attorney, or Paula R. Jenson, Senior Counsel (concerning the rule and release generally), (202) 942-0073, Office of Chief Counsel, Division of Market Regulation, Mail Stop 7-10; Gautam S. Gujral, Attorney (concerning information repositories) (202) 942-0175, Office of Market Supervision, Division of Market Regulation, Mail Stop 5-1, and David A. Sirignano, Senior Legal Adviser to the Director (202) 942-2870, or Amy Meltzer Starr, Attorney (concerning annual financial information, obligated persons, and material events generally), (202) 942-1875, Division of Corporation Finance, Mail Stop 7-6 Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
S.E.C. Full Text