Market participants can expect increased municipal securities enforcement in 2015, a year that could bring greater emphasis on individual liability and secondary market disclosures.

Securities and Exchange Commission officials said the enforcement division said the SEC plans to vigorously pursue violations of the securities laws in the muni market. An important development during the coming year will be the unwinding of the SEC's self-reporting program, the Municipalities Continuing Disclosure Cooperation initiative. The MCDC consumed the attention of bond lawyers, issuer officials, and broker-dealers last year by offering reduced settlement terms for transaction participants who reported instances during the past five years in which they offered bonds under official statements that falsely stating they were in compliance with their continuing disclosure agreements.

Norman Goldberger, a partner at Ballard Spahr in Philadelphia, predicted that fights could erupt over the issue of materiality as the MCDC unwinds.

Related Practice

Municipal Securities Regulation and Enforcement