Changes to the Securities and Exchange Commission’s Rule 15c2-12 designed to both increase the quantity and timeliness of issuers’ continuing disclosures take effect Wednesday and strongly encourage issuers of variable-rate demand obligations to use so-called long-form disclosure in their offering documents.

The changes to the rule, which the SEC approved in May, apply to continuing disclosure agreements executed on or after Wednesday, SEC staff have said. Dealers generally are prohibited from underwriting municipal securities unless the issuer has contractually agreed to adhere to the rule, which mandates the filing of annual financial and operating information and event notices with the Municipal Securities Rulemaking Board.

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