Market participants can expect increased municipal securities enforcement during 2015, a year that may bring resolution of the Securities and Exchange Commission's self-reporting initiative as well as greater emphasis on individual liability and secondary market disclosures.

An important development during the coming year will be the unwinding of the SEC's self-reporting program, the Municipalities Continuing Disclosure Cooperation initiative.

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

Goldberger said he expects to see the SEC pursue big muni cases in the coming year that feature tough cease-and-desist orders with restrictions on issuers akin to backdoor regulation of municipalities. "I think in egregious cases you're going to see prosecutions of officials," he said.

Related Practice

Municipal Securities Regulation and Enforcement