As provided in our legal update "SEC Continuing Disclosure Enforcement," dated July 17, 2014, the United States Securities and Exchange Commission (the "SEC") has previously established the Municipalities Continuing Disclosure Cooperation Initiative (the "MCDC Initiative"), which is intended to cure widespread violations of federal securities law regarding continuing disclosure obligations of municipal issuers. 

Since our initial legal update, the SEC has made two changes to the MCDC Initiative that affect municipal issuers.  First, the SEC has extended the self reporting period for municipal issuers from September 10, 2014 to December 10, 2014.  Second, the SEC has acknowledged that there are difficulties in identifying potential violations when filings were made in the Nationally Recognized Municipal Securities Information Repository ("NRMSIR") system, which existed prior to the current Electronic Municipal Market Access ("EMMA") system.  In addressing this difficulty, the SEC will consider reasonable, good faith, and documented efforts in deciding whether to recommend enforcement action if the SEC discovers an unreported violation that predates EMMA. To read the full SEC press release, please click here.