Bond Accountability Commission 2 Recommendations Page 38
are accustomed to receiving financial and other information on a more detailed and timely basis than is customary in the municipal securities market. The MSRB described its incentives in its initial proposing release,39 as follows— Such additional continuing disclosures and related indexing information would be displayed on the EMMA web portal and also would be included in EMMA’s continuing disclosure subscription service. Such additional items would include: • an issuer’s or obligated person’s undertaking to prepare audited
financial statements pursuant to generally accepted accounting principles (“GAAP”) as established by the Governmental Accounting Standards Board (“GASB”), as described below (the “GASB-GAAP undertaking”); • an issuer’s or obligated person’s undertaking to submit annual
financial information to EMMA within 120 calendar days after the 39
The MSRB’s revised incentives are described in MSRB Notice 2009-63, “MSRB Amends Pending Proposal on Additional Voluntary Submissions by Issuers and Obligated Persons to the MSRB’s Electronic Municipal Market Access System (EMMA”) (Dec. 21, 2009). See MSRB Press Release, “Municipal Securities Rulemaking Board Amends Proposal on Voluntary Timeframe for Submission of Annual Financial Information from Issuers and Other Related Proposals” (Dec. 21, 2009). Regarding the MSRB’s initial proposal, see MSRB Notice 2009-44, “MSRB Files Proposals to Provide for Additional Primary Market and Continuing Disclosure Information To Be Made Available Through the MSRB’s Electronic Municipal Market Access System (‘EMMA’)” (July 15, 2009). See also MSRB Press Release, “Municipal Securities Rulemaking Board Seeks to Provide Investors with Additional Disclosure Information—Proposal Would Allow Pre-Sale Disclosures and Shed Light on Timing of Annual Financial Disclosures” (July 15, 2009). As with other MSRB actions, Notice 2009-44 is filed with the SEC and subject to SEC approval. See SEC Rel. No. 34-60315 (July 15, 2009) (giving notice of the MSRB’s filing of the proposed rule with the Commission). The MSRB documents are available at http://www.msrb.org/msrb1/whatsnew/2009-63.asp.