On April 9, the Municipal Securities Rulemaking Board (“MSRB”) filed with the SEC a temporary rule change that waived certain late fees and delayed some key compliance deadlines.
Municipal securities dealers and municipal advisors are required to inspect each office of supervisory jurisdiction annually and to conduct annual testing, review and executive-management certification of their systems of supervisory controls and compliance. See MSRB Rules G-27(b)(vi), 27(f)(i) and G-44(d). The rule change provides that those functions will be “deemed” timely completed ...
The Municipal Securities Rulemaking Board (“MSRB”) on April 2 published its statistical analysis and list of COVID-19 continuing disclosures filed by municipal issuers during the first quarter of 2020. Of 43,667 disclosures, 506 were related to the Coronavirus pandemic.
Securities and Exchange Commission Rule 15c2-12 requires all underwriters of municipal securities to require municipal issuers to enter an agreement that issuers will file continuing disclosures of events that may have a material effect upon bond repayment. Although the COVID pandemic itself is not ...
SEC Enforcement Co-Directors Stephanie Avakian and Steven Peiken issued a March 23 public statement warning that the novel Coronavirus pandemic increases material non-public information and reminding corporate insiders of their obligation to disclose or abstain.
“Corporate insiders are regularly learning new material nonpublic information that may hold an even greater value than under normal circumstances. This may particularly be the case if earnings reports or required SEC disclosure filings are delayed due to COVID-19. Given these unique circumstances, a greater ...
The U.S. Department of Justice (“DOJ”) has filed its first criminal action against fraudulent activity taking advantage of the novel coronavirus pandemic.
DOJ filed suit on March 21 in Austin, Texas accusing the operators of “coronavirusmedicalkit.com” of wire fraud under 18 U.S.C. § 1343 by purporting to sell WHO-approved COVID-19 vaccines online in return for credit-card payments of $4.95 for shipping. But there are no approved vaccines yet, and WHO is not involved with the website.
The United States District Court for the Western District of Texas entered temporary ...
The SEC has gathered its guidance in a single location. Topics covered include:
(a) The SEC’s own Business Continuity Plan (“BCP”) and its implementation;
(b) Increased market monitoring and surveillance;
(c) Issuer guidance regarding COVID-related disclosures;
(d) Conditional exemptive orders for registrants, including investment companies and investment advisers, easing meeting and certain reporting requirements;
(e) Delaying certain open rulemaking proposals until April 24.
The Enforcement Division remains active, having implemented temporary trading ...