SEC's Report and Order Regarding Harrisburg
This edition of the Hawkins Advisory summarizes and analyzes the SEC’s Report and Order regarding Harrisburg and the potential securities law liability for public officials for oral and written public statements, and provides suggested guidance.
On May 6, 2013, the Securities and Exchange Commission (the “SEC”), in an administrative proceeding,1 accepted a settlement offer made by the City of Harrisburg, Pennsylvania (the “City”) and entered a cease-and-desist order (the “Order”) against the City. The SEC found that the City had acted in a reckless manner in violation of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder. In the Order, no action was taken against City officials. The proceeding was accompanied, however, by a report of investigation (the “Report”) issued by the SEC pursuant to Section 21(a) of the Exchange Act in which the SEC addressed the obligations of public officials relating to their secondary market disclosures (i.e., disclosures made outside the context of an offering of municipal securities).
Also of Interest
- Municipal Market Regulatory Update
This Hawkins Advisory describes the proposed amendments to Rule 15c2-12 and provides a summary and analysis of SEC municipal enforcement actions over the last year.
- Hawkins Assists City and County of San Francisco with Financing of 55-Story Residential Building
In December 2016, Hawkins served as disclosure counsel to the City and County of San Francisco in connection with its issuance of $240 million Variable Rate Multifamily Housing Revenue Bonds (Transbay Block 8 Tower) issued on behalf of an affiliate of the developer, Related Companies. The bonds will finance a portion of the cost of a new $600 million 55-story tower and surrounding buildings in downtown San Francisco.
- MCDC Settlements with Issuers
Today, the Securities and Exchange Commission (“SEC”) entered into cease‐and‐desist settlement orders with 71 municipal issuers and obligated persons, across 45 states, that had self‐reported pursuant to the SEC’s Division of Enforcement’s Municipalities Continuing Disclosure Cooperation (“MCDC”) Initiative.
- MSRB Rule G-42
On December 23, 2015, the Securities and Exchange Commission (the “SEC”) issued an order approving the Municipal Securities Rulemaking Board’s (the “MSRB”) new Rule G‐42, on duties of non‐solicitor municipal advisors, and related amendments to its Rule G‐8, on books and records.