Brokers Must Make Sure|Companies Report Events

     WASHINGTON (CN) – A broker, dealer, or municipal securities dealer acting as underwriter of a primary offering of municipal securities must reasonably determine that the securities issuer has agreed to provide notice of specified events before ten days have passed, according to rules by the Securities and Exchange Commission.




     It also must be reasonably determined that the issuer will amend the list of events for which a notice is to be provided and modify the events that are subject to a materiality determination before triggering a requirement to provide notice to the Municipal Securities Rulemaking Board.
     In addition, the rules revise an exemption for certain offerings of municipal securities with put features (demand securities).
     The agency also provides interpretive guidance intended to assist municipal securities brokers, dealers, and municipal securities dealers in meeting their obligations under the antifraud provisions of the federal securities laws.
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