The Securities and Exchange Commission has begun to draft its report on municipal securities, but the market needs a more extensive examination and greater attention, SEC Commissioner Elisse Walter said to a crowd of finance professionals in New York.
Muni market needs more oversight: SEC commissioner
Walter, who addressed the Securities Industry and Financial Markets Association by video, has overseen the agency's review of municipal markets, a regular source of capital for not-for-profit hospitals and health systems. Walter said fixed income should get the same attention as equity markets, but doesn't.
The report, which will include policy recommendations and possible legislative proposals, will come after a truncated series of hearings that began last fall. The SEC held its final hearing in Alabama in July.
Walter told the New York audience that the agency lacks enforcement options for municipal bond markets, where transparency is limited and the SEC has minimal oversight. She dismissed a prior comment she made—on a proposed repeal of the Tower Amendment, which exempts municipal bonds from seeking SEC review and approval before going to market—as provocative talk to get attention. She said repeal of the law is unlikely.
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