The alert issued by the SEC notes that in recent years there has been significant attention focused on the financial condition of some state and local governments. It cites concerns about the extent of written documentation by broker-dealers of due diligence efforts and supervision of municipal securities offerings. Included in the alert are examples of practices used by broker-dealers that may help to demonstrate due diligence and supervisory reviews, such as detailed written policies and procedures, use to commitment committees, due diligence memoranda, etc. activities.
Risk Alert on Strengthening Practices for Underwriting of Municipal Securities, and Investor Bulletin on Municipal Bonds
