On 31 July 2014, the Securities and Exchange Commission’s (“SEC”) Enforcement Division announced modifications to its Municipalities Continuing Disclosure Cooperation Initiative (the “Initiative”). Under the Initiative, announced on 10 March 2014, the SEC’s Enforcement Division agreed to recommend standardized settlement terms for municipal issuers and underwriters who self-report inaccurate statements made in bond offerings about their prior compliance with continuing disclosure obligations under the Securities Exchange Act of 1934.

The SEC announced that it would extend the deadline for smaller municipal securities underwriter firms and municipal issuers to self-report potential violations from 10 September 2014 to 1 December 2014. For underwriters, the deadline for compliance remains unchanged at 10 September 2014. However, the SEC announced that it would take a tiered approach to civil penalties based on the size of the underwriters.

Finally, the SEC announced that if violations are identified after the expiration of the Initiative, the SEC’s Enforcement Division would consider factors such as reasonable good faith, as well as documented efforts in deciding whether to recommend enforcement action and, as applicable, in determining relief.

The full text describing the Initiative is available at: http://www.sec.gov/divisions/enforce/municipalities-continuing-disclosure- cooperation-initiative.shtml.