On July 31st, the SEC issued its report on the municipal securities market. The report discusses potential legislative changes that could help improve disclosures to investors. For instance, the report recommends that Congress consider authorizing the SEC to set baseline disclosure standards and require municipal issuers to have audited financial statements. Other recommendations include eliminating the availability of Securities Act and Securities Exchange Act exemptions for conduit borrowers who are not municipal entities; authorizing the Commission to establish the form and content of financial statements for municipal issuers who issue municipal securities; providing a safe harbor from private liability for forward-looking statements; permitting the Internal Revenue Service to share information with the SEC that it obtains from returns, audits, and examinations; and providing a mechanism, through trustees or other entities, to enforce compliance with continuing disclosure agreements and other obligations of municipal issuers to protect municipal securities bondholders. SEC Press Release.