WASHINGTON — Municipal issuers who do not comply with their continuing disclosure agreements should be penalized, the Municipal Securities Rulemaking Board told the Securities and Exchange Commission Monday.

In an 11-page, Aug. 8 letter, addressed to SEC commissioner Elisse Walter, MSRB chair Michael Bartolotta said there “seem to be no penalties for noncompliance” and “therefore there is limited accountability” for issuers who do not comply with their continuing disclosure obligations under SEC Rule 15c2-12. The rule requires issuers to disclose annual financial and operating information as well as material and other event notices soon after such events occur.

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