BOSTON - The Securities and Exchange Commission's new program to encourage self-reporting of a specific continuing disclosure violation is facing some skepticism from bond lawyers, even as one SEC attorney said it may eventually be expanded to cover other violations.

The SEC's Municipalities Continuing Disclosure Cooperation initiative, announced March 10, would allow issuers and underwriters to get favorable settlement terms if they voluntarily report that an official statement fails to state the issuer did not file annual disclosure and operating information at some point during the past five years.

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