Explanation of Continuing Disclosure under SEC Rule 15c2-12
SEC Rule 15c2-12 is a regulatory provision that governs the offering and disclosure practices of municipal securities issuers. It requires issuers of municipal securities, such as bonds, to enter into a written agreement to provide ongoing disclosure to the Municipal Securities Rulemaking Board (MSRB). This disclosure ensures that investors have access to timely and accurate information about the financial condition and operating performance of municipal securities issuers.
Under Rule 15c2-12, issuers are required to provide the following types of continuing disclosure:
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Annual Reports: Issuers must submit annual financial information, including audited financial statements and operating data, within a specified timeframe following the end of each fiscal year. These reports provide investors with insight into the issuer's financial health and performance.
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Event Notices: Issuers must also report certain material events that could impact the bondholders' interests, such as bond calls, rating changes, defaults, or adverse tax events. These event notices must be filed with the MSRB in a timely manner to ensure that investors are promptly informed of significant developments.
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Failure-to-File Notices: If an issuer fails to submit required disclosures in a timely manner, they must file a notice of such failure with the MSRB. This notification alerts investors to the issuer's non-compliance with its disclosure obligations.
At Wilmot Union High School, we take our obligations under SEC Rule 15c2-12 seriously and are committed to providing transparent and timely disclosure to our investors and stakeholders. We understand the importance of maintaining the integrity of the municipal securities market and fostering investor confidence through comprehensive and accurate disclosure practices.
Our compliance with Rule 15c2-12 helps ensure that investors have access to the information necessary to make informed investment decisions and promotes transparency and accountability in our financial reporting. We continuously monitor regulatory developments and update our disclosure practices as necessary to remain in compliance with SEC regulations.
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