SEC chair to speak at issuer conference

Securities and Exchange Commission Chair Jay Clayton is expected to speak directly to municipal issues next month, and market participants are hoping he'll provide more clues about his thoughts on disclosure and other challenges.

At a conference hosted at the Government Finance Officers Association's Washington office on Nov. 14, Clayton will deliver welcome remarks, a sign of his continued focus on the municipal market.

Andrew Harrer/Bloomberg

“That he accepted the invitation and that he’s there, truly means that he has a focus on the municipal market,” said Emily Brock, director of GFOA’s federal liaison center.

Brock said Clayton speaking at the conference will help the market.

“Any context he can give us on what he’s thinking helps our market quite a bit,” Brock said. “Again we know he has a focus and cares a lot about our market specifically because of the retail component of the municipal market. We’re just going to really be paying attention and hopefully be able to have a little bit of discourse with him.”

Clayton has taken considerable interest in municipal securities and indicated late last year during an SEC-hosted municipal disclosure conference that the SEC would be looking at ways to improve disclosure. Clayton’s focus has also been on retail investor protection.

The SEC’s Office of Municipal Securities is also planning to put out a staff legal bulletin soon to clear up some confusion on what types of public disclosures are subject to anti-fraud provisions of the federal securities laws.

GFOA recently put together a working group to address overall issues with timely disclosure, which has met with the OMS twice since July and plans to again next week. Brock said they plan on listening carefully to what Clayton says about disclosure during his opening remarks in regards to the working group.

The working group has about 10 to 15 industry professionals including analysts, issuers, underwriters, municipal advisors and bond lawyers. Brock has said the SEC encouraged GFOA to work with the Municipal Securities Rulemaking Board and other industry groups to reach the goal of timely disclosure.

The rest of the agenda in November is stacked with discussions on the Libor transition, the Internal Revenue Service, disclosure and other topics in the municipal market.

Rep. Dutch Ruppersberger, D-Md., who is co-chairman of the House Municipal Finance Caucus, will speak during lunch. Staff from the office of his co-chair Rep. Steve Stivers, R-Ohio, as well as staff representing Reps. Richard Neal, D-Mass., Gwen Moore, D-Wis., and Terri Sewell, D-Ala., will also chat in the afternoon.