SEC: Municipalities Should Disclose Y2K Info in Bond Issues

The Securities and Exchange Commission is advising local governments to disclose their Year 2000 programming activities when issuing municipal bonds. "We are trying to remind them that Y2K problems may be material to investors and that municipalities should think about that when making disclosures," said Paul Maco, director of the SEC's Office of Municipal Securities.

In the next few weeks, the SEC will issue guidance on current disclosure and anti-fraud laws as they relate to municipal Year 2000 activities, Maco said. "The only authority we have over municipalities is under our anti-fraud provisions," he said. "What we are endeavoring to do is to give a heads-up advisory to all issuers so [that] they think about Y2K issues as they may come into play in their disclosures as mandated by anti-fraud laws."