SEC has approved an amendment to rule G-32, on disclosures in connection with new issues, relating to inter-dealer dissemination of official statements and disclosure of initial offering prices to customers
On July 17, 1998, the Securities and Exchange Commission ("SEC") approved an amendment to rule G-32, on disclosures in connection with new issues.1 The amendment strengthens the rule’s requirements regarding dissemination of official statements to brokers, dealers and municipal securities dealers ("dealers") purchasing new issue municipal securities during the underwriting period by requiring, among other things, that official statements be sent to purchasing dealers within one business day of request. In addition, the amendment incorporates a longstanding Board interpretation to the effect that dealers are required to disclose to customers purchasing new issue municipal securities sold in a negotiated transaction the initial offering prices of each maturity of the issue, including any maturity that has not been reoffered.
For further details on the amendment, see the Notice of Filing dated March 12, 1998 and Notice of Filing dated December 22, 1997.
A further amendment to rule G-32 was approved by the SEC on July 14, 1998. For the complete text of rule G-32, as amended, please click here.
July 21, 1998
ENDNOTES
1Securities Exchange Act Rel. No. 40230 (July 17, 1998).
