SEC offers underwriters incentive to self-report infringements

The US Securities & Exchange Commission (SEC) has launched a new initiative that offers incentives for underwriters to disclose wrongdoing before the enforcement agency gets wind of it. As part of the Municipalities Continuing Disclosure Cooperation, the SEC said underwriters of municipal securities can be given favourable settlement terms if they self-report inadequate due diligence, for example regarding the truthfulness of statements by the issuer.


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