Municipal Securities Underwriters Pay a Total of $325,000 in Fines
Source: Sec ·
The Securitiesand Exchange Commission announced today that NASD RegulationInc. censured and fined 21 securities firms for violationsof Rule G-36 of the Municipal Securities Rulemaking Board.At the same time, the Comptroller of the Currency sanctioneda…
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The Securities and Exchange Commission announced today that NASD Regulation Inc. censured and fined 21 securities firms for violations of Rule G-36 of the Municipal Securities Rulemaking Board. At the same time, the Comptroller of the Currency sanctioned a division of a bank for similar violations.* These proceedings resulted from a coordinated effort by the SEC, NASD Regulation, Inc. and the OCC. Rule G-36 requires firms underwriting municipal securities offerings to send the official statements from those offerings to the MSRB within one day of receiving the information from the issuer, and in no case later than 10 days from the date of the agreement to purchase the securities. The official statement is then placed in the Board’s Municipal Securities Information Library, and is available to the public. Chairman Arthur Levitt said, “Today’s enforcement actions are a wake-up call to municipal securities underwriters. The lapses here are particularly unfortunate because they are so…