Local Government Investment Pools
What Are Local Government Investment Pools?
Local government investment pools are created by states or local governments to provide investment vehicles for public funds of local governmental entities.
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How Can Local Government Investment Pool Disclosures Be Accessed?
The MSRB’s Electronic Municipal Market Access (EMMA) website provides free access to disclosures for local government investment pools for which municipal securities dealers provide brokerage, marketing and other sales-related services.
However, most local government investment pools do not engage municipal securities dealers in connection with the marketing of the pool and therefore disclosures for such pools generally are not available through EMMA.
What Information is Available about Local Government Investment Pools?
For local government investment pools where a broker-dealer has been engaged to provide marketing services, SEC Rule 15c2-12 requires that the dealer receive from the issuer a copy of an official statement (typically referred to as an information statement) that includes, among other things, information concerning the terms of the securities and information concerning the issuer and other entities, enterprises, funds, accounts and other persons material to an evaluation of the offering.
If a dealer sells local government investment pools shares, it generally is obligated under MSRB Rule G-32 to provide a copy of the information statement to the participant by settlement and to the MSRB for posting on the MSRB’s EMMA website. This disclosure requirement does not apply, however, in situations where state employees market their local government investment pools directly to participants without the assistance of a broker-dealer.
How Can Participants Use a Local Government Investment Pool Information Statement?
Information statements typically provide information designed to assist participants in making an investment decision and in understanding how the local government investment pool operates. Information statements include, among other things, information concerning the terms of the securities and information concerning the issuer and other entities, enterprises, funds, accounts and other material for an evaluation of the offering. Information statements also will typically provide information about the local government investment pool's investment advisor or administrator and oversight of the plan, how to open an account, how to invest, how to make withdrawals and reporting on local government investment pools.