Outlook for 2017 Muni Enforcement
December 28, 2016 10:57 AM
LeeAnn Gaunt, chief of the SEC's Public Finance Abuse Unit
Gaunt said firms and issuers that did not voluntarily report under MCDC are "of particular interest" and that the public finance abuse unit's lawyers "intend to devote significant resources to identifying violations by those parties."
Paul Maco, partner with Bracewell in Washington, D.C.
"This focus on individuals I don't think is going to go away," Maco said, referring to the trend toward including charges against individuals in nearly every muni enforcement action.
Elaine Greenberg, shareholder with Greenberg Traurig in Washington, D.C.
"Those [enforcement] areas that people view to be regulation by enforcement [or] those that don't rise to the level of clear fraudulent conduct may have a more difficult time getting through the approval process," Greenberg said.
Michael Decker, managing director and co-head of municipal securities for the Securities Industry and Financial Markets Association
"I wouldn't be surprised if there were firms that didn't self-report, but I haven't heard of any," Decker said, referring to dealers who would have chosen not to participate in the SEC's MCDC initiative.
Susan Gaffney, executive director of the National Association of Municipal Advisors
NAMA is interested in the SEC enforcement and examination staffs' findings to help MAs make sure they are adhering to rules and not engaging in violations, Gaffney said.
Ernesto Lanza, senior counsel with Clark Hill in Washington, D.C.
"To the extent rulemaking becomes more difficult, enforcement is still the other arrow [regulators] have in their quiver," Lanza said. "It is a lot harder for someone to constrain enforcement actions. Enforcement is always going to be there as a tool for the SEC."
Emily Brock, director of the Government Finance Officers Association's federal liaison center
"Going forward, I think [individual actions from MCDC are] a real fear and so I'm hoping that we continue to have dialogue with the SEC to have a better understanding about their approach," Brock said.
Leo Karwejna, chief compliance officer with The PFM Group
MA enforcement will be helpful for two reasons, Karwejna said. "The bad actors that are out there I believe should be brought to task and I also think it helps the industry and the marketplace as a whole to
not find themselves in similar circumstances."
