The Securities and Exchange Commission recently proposed amendments to Rule 15c2-12 under the Securities Exchange Act of 1934. Rule 15c2-12 prohibits dealers acting as an underwriter for a primary offering of municipal securities from purchasing or selling those securities after the occurrence of certain events.
To comply with the rule, underwriters typically provide event notices to the Municipal Securities Rulemaking Board (MSRB). The proposed amendment would change the list of events for which notice is to be provided to the MSRB to include (1) the incurrence of certain financial obligations of an obligated person; and (2) other events that reflect financial difficulties of an obligated person.
The rule proposal is available here.