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SIFMA Releases Guidance to Help Municipal Underwriters Comply with New Disclosure Requirements

Release Date: July 18, 2012 
Contact: Liz Pierce, (212) 313-1173, lpierce@sifma.org  

SIFMA Releases Guidance to Help Municipal Underwriters Comply with New Disclosure Requirements  

New York, N.Y., July 18, 2012 — SIFMA today announced it is releasing a set of model documents and related guidance to help municipal securities underwriters comply with new requirements for disclosure to municipal issuers set forth by MSRB Rule G-17. The new requirements are effective as of August 2, 2012, 

SIFMA’s G-17 Model Disclosure Documents are designed to be a starting point for disclosures concerning the underwriter’s role, compensation, and conflicts, as well as regarding the material financial characteristics and risks inherent in certain complex transactions commonly recommended by underwriters. SIFMA recommends that underwriters update their internal processes and continue to   educate their public finance departments and issuer clients about the coming changes.  

These documents are designed to be a starting point only; SIFMA encourages underwriters to expand or modify these documents as necessary. Underwriters should also develop additional disclosures for other types of complex municipal financings, or other unique financial characteristics and risks not included in SIFMA’s Model Disclosures, for transaction structures that the underwriter often recommends. 

The following Model Documents are now available at www.sifma.org/g17disclosures/ 

  • Model Underwriters Letter 
  • Model Risk Disclosures for the following types of transactions: 
    • Fixed Rate Bonds (if the issuer or issuer personnel is inexperienced)
    • Variable Rate Demand Obligations 

The following Model Documents will be available in the coming week: 

  • Model Policies and Procedures 
  • Model Risk Disclosures for the following types of transactions: 
    • Floating Rate Notes
    • Swaps 

SIFMA may create additional Model Documents as necessary to further help its members with compliance.  All of SIFMA’s G-17 Model Documents will be available to any interested parties at www.sifma.org/g17disclosures/. 

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 The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers.  SIFMA's mission is to develop policies and practices which strengthen financial markets and which encourage capital availability, job creation and economic growth while building trust and confidence in the financial industry.  SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).  For more information, visit www.sifma.org. 


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Contact

In New York:
Katrina Cavalli
212.313.1181


-or-


 Liz Pierce

212.313.1173

 

In Washington:

Carol Danko
202.962.7390