SEC Chair Jay Clayton advised municipal issuers to focus on providing "timely and accurate" financial disclosures for investors.
In remarks at the Municipal Securities Conference, Mr. Clayton criticized some municipal issuers for making their annual financial information available after the end of the fiscal year, stating that "timely and accurate financial information" is critical for investors and analysts. According to Mr. Clayton, without timely and accurate financial information, "it is challenging to accurately evaluate the current financial condition of a municipal issuer (or any issuer for that matter)." He said he directed the SEC Office of Municipal Securities to collaborate with the MSRB and other stakeholders to explore how broker-dealers can improve the timeliness and scope of issuer financial information.
Commentary / Steven Lofchie
The SEC has a tough challenge in ensuring that local governments provide good financial information. The SEC cannot find it attractive to bring governments or government officials into court. On the other hand, it should not be left entirely to broker-dealers to police issuer disclosure.
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