Reuters: Regulatory News: New SEC municipal bond head sees roadmap in report

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New SEC municipal bond head sees roadmap in report Oct 24th 2012, 23:40 CHICAGO | Wed Oct 24, 2012 7:40pm EDT CHICAGO Oct 24 (Reuters) - The new head of the U.S. Securities and Exchange Commission's Office of Municipal Securities said Wednesday that he will be using a report released by the agency in July that calls for more oversight of the municipal market. "In short, that's our roadmap for priorities," John Cross said at the National Association of Bond Lawyers' annual workshop. The much-anticipated report made it clear the SEC wants to extend its regulatory reach into the $3.7 trillion municipal bond market where states, cities, schools and other issuers raise money for capital projects and cash-flow needs. The report, which Cross said was endorsed by all five SEC commissioners, focused on improving issuer disclosures and on market structure. On the disclosure front, Cross said his office will be looking at baseline standards for issuers, as well as an enforcement mechanism for continuing disclosure, an area that he cited as being "a real problem." Disclosure topics will include pension and health care liabilities and derivatives exposure of issuers, he added. As for market structure, Cross said a big theme will be improving pre-trade price transparency. He also said he hoped to finalize rules governing municipal advisors early next year. The so-called Dodd-Frank financial reform law requires stricter oversight of municipal advisors and the SEC has wrestled with defining exactly who counts in that role. Cross, who worked in the U.S. Treasury's Office of Tax Policy before he was tapped for the SEC post in August, said he hopes to bring "a reasonable and balanced perspective" to his new position. Link this Share this Digg this Email Reprints

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