IS THE SEC STRENGTHENING PROTECTIONS FOR MUNI BOND PURCHASERS?:

The following is an excerpt from the SEC website: "What is the SEC doing to strengthen protections for municipal bond investors? Public companies that issue stocks are required to provide ongoing disclosure to the SEC and to investors. In contrast, most offerings by municipal issuers are exempt from the provisions of federal law requiring filings with the SEC. However, for most municipal securities issued after July 3, 1995, annual financial information and operating data, as well as notice of certain events, is required by SEC dealer regulations to be filed with the Municipal Securities Rulemaking Board and is available at no charge to investors at www.emma.msrb.org. Improved disclosure is underway: the SEC approved changes to its rules in May 2010 designed to increase the quality and timeliness of disclosure about municipal bonds, including newly issued variable rate demand obligations. Those changes are slated to take effect on the compliance date of December 1, 2010. Beginning in September, the SEC staff will hold field hearings to gather input from municipal market participants. Some of the topics to be considered include: disclosures in official statements when municipal bonds are first issued; the availability of continuing information on municipal bonds; accounting practices, including whether the bond issuer prepares its financial statements in accordance with the standards set by the Government Accounting Standards Board, or GASB; and sales practices and potential conflicts of interest. The hearings will help inform a planned SEC staff report that will recommend ways to better protect municipal bond invesTORS."