X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
<a href="http://www.freedigitalphotos.net">Photo credit: FreeDigitalPhotos.net</a>

Municipal bonds are fundamentally different than corporate debt due to the limited amount of information investors can obtain from the issuer. Corporate issuers that offer their bonds to the public must file accurate quarterly financial reports. However, municipal issuers have far lower federal disclosure requirements for secondary-market bonds, as a recent SEC proceeding against the City of Harrisburg, Penn., revealed. 

In settling with Harrisburg under a cease-and-desist order (and no fine), the SEC wrote in its May 6 release: “Unlike many primary offering disclosure documents, statements by public officials that reach the secondary market may not be subject to the same comprehensive review with respect to the disclosure standards of the federal securities laws. Nevertheless, public officials may have liability under the antifraud provisions of the federal securities laws for such statements.” The SEC said Harrisburg published statements that failed to disclose, among other material information, a 2009 credit rating downgrade by Moody’s. Even so, Moody’s had assigned Harrisburg an Aaa rating as late as December of 2008.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2022 ALM Global, LLC. All Rights Reserved.