Municipal Securities Underwriters Pay a Total of $325,000 in Fines
The Securitiesand Exchange Commission announced today that NASD RegulationInc. censured and fined 21 securities firms for violationsof Rule G-36 of the Municipal Securities Rulemaking Board.At the same time, the Comptroller of the Currency sanctioneda…
The Securities and Exchange Commission (SEC) announced today that 21 securities firms have been fined a total of $325,000 for violating Rule G-36 of the Municipal Securities Rulemaking Board (MSRB). The rule requires firms underwriting municipal securities offerings to send official statements to the MSRB within one day of receiving the information from the issuer, with a maximum delay of 10 days from the date of the agreement to purchase the securities.
The violation of this rule results in a lack of timely disclosure, which can negatively impact the quality of disclosure and the overall integrity and efficiency of the municipal securities market. Notable fines include $25,000 each to Bear Stearns & Co. Inc., Goldman, Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co., Inc., Oppenheimer & Co., Inc., Paine Webber Incorporated, and Smith Barney Inc., while other firms received fines ranging from $10,000 to $25,000.
Chairman Arthur Levitt emphasized that these enforcement actions serve as a reminder to market participants about the importance of information and the need for firms to have procedures in place to comply with MSRB rules.
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