A legal summary of Continuing Disclosure is a requirement for issuers of municipal securities to provide ongoing information to investors about the financial condition and operations of the issuer. This includes annual financial statements, audited financial statements, and notices of certain events that may affect the issuer’s ability to repay the securities. The purpose of Continuing Disclosure is to ensure transparency and provide investors with relevant information to make informed investment decisions. Failure to comply with Continuing Disclosure requirements can result in legal consequences for the issuer.
Answer: Continuing disclosure refers to the ongoing obligation of issuers of municipal securities to provide information to the public about the financial and operating condition of the issuer.
Answer: The issuer of the municipal securities is responsible for making continuing disclosures.
Answer: The information that must be disclosed under continuing disclosure requirements includes financial statements, operating data, and other information that is material to the financial condition of the issuer.
Answer: Continuing disclosures must be made on an annual basis, or more frequently if there is a material event that affects the financial condition of the issuer.
Answer: If an issuer fails to make continuing disclosures, it may be subject to enforcement action by the Securities and Exchange Commission (SEC) or other regulatory agencies.
Answer: Yes, there are certain exemptions from continuing disclosure requirements, such as for small issuers or for issuers of certain types of securities.
Answer: Yes, an issuer can update or amend its continuing disclosure information if there is a material change in its financial condition or operating data.
Answer: The purpose of continuing disclosure requirements is to provide investors with ongoing information about the financial condition of the issuer and to promote transparency in the municipal securities market.
Answer: An issuer can ensure compliance with continuing disclosure requirements by establishing internal controls and procedures to ensure that all required information is disclosed in a timely and accurate manner.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
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