SEC Announces Additional Settlement Under Municipal Continuing Disclosure Cooperation Initiative


The SEC recently announced another issuer settlement under its Continuing Disclosure Cooperation Initiative (see our blogs First Settled Proceeding (July 23, 2014) here).  In this settled action, Kansas consented to the standard sanctions offered municipal issuers under the Initiative – a settled administrative action (without admitting or denying) charging negligence under ’33 Act §17(a)(2-3) and requiring remedial efforts (new policies and procedures), disclosure of the sanction during the next five years, and continuing cooperation.  The charges arose from eight bond offerings in 2009-2010, lacking adequate disclosure of exposure to underfunded pension liabilities.

In re State of Kansas, ’33 Act Rel. No. 9629, Admin. Proc. No. 3-16009 (SEC Aug. 11, 2014).

Topics:  MCDC, Municipal Securities Issuers, Sanctions, SEC, Settlement

Published In: General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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