Using EMMA to Showcase Your Government

Transcription

1 Using EMMA to Showcase Your Government Presenters: QR Code Kenton Tsoodle, City of Oklahoma City, OK Justin Pica, MSRB Troy Bruun, City of Wichita, KS Susan Dushock, NFMA Date: 05/21/2014

2 Putting EMMA to Work for You Justin Pica, Director of Product Management Municipal Securities Rulemaking Board GFOA Annual Conference Minneapolis, MN May 21, 2014

3 Presentation Outline Overview of EMMA Understanding and Complying with Financial Disclosure Obligations Submitting Voluntary Disclosures to EMMA EMMA Tools for Issuers Coming Soon to EMMA Municipal Securities Rulemaking Board 3

4 Overview of EMMA

5 The EMMA Website emma.msrb.org Launched by the MSRB in 2008 Serves as official, free and public source of trade data and disclosure information on virtually all municipal securities Provides a platform for issuers to communicate with investors Municipal Securities Rulemaking Board 5

6 Information Available on EMMA Official Statements Trade Prices and Yields Ongoing Financial Disclosures Event Notices Advance Refunding Documents Variable Rate Securities Information Interest rate resets Credit enhancement documents Market Statistics 529 Plan Disclosure Documents Credit Ratings Municipal Securities Rulemaking Board 6

7 Recent Navigation Enhancements Discover new ways to use EMMA More easily browse for information View a daily market recap Municipal Securities Rulemaking Board 7

8 Understanding and Complying with Financial Disclosure Obligations

9 The Disclosure Framework Securities Exchange Act of 1934 Prohibits fraudulent, inaccurate or misleading information in disclosures to investors Material information may not be omitted SEC Rule 15c2-12 Financial and Operational Information Event Notices Continuing Disclosure Agreements When, how and for which parties disclosures are to be provided Municipal Securities Rulemaking Board 9

10 Improving Municipal Financial Disclosure SEC s July 2012 report on the municipal securities market highlighted issue of inadequate disclosure Municipalities Continuing Disclosure Cooperation (MCDC) Initiative Voluntary SEC program (March 2014) Encourages issuers and underwriters to self-report disclosure violations Reduced sanctions if violations reported before enforcement investigation uncovers them Municipal Securities Rulemaking Board 10

11 Improving Municipal Financial Disclosure (continued) Recent SEC securities fraud charges State of Illinois: Inadequate pension disclosures Harrisburg, PA: Misleading statements made outside of its securities disclosure documents Victorville, CA: Inflated property valuations of security for bonds South Miami: Failure to disclose threats to tax-exempt eligibility City of Miami: False and misleading statements West Clark Community Schools, IN: False statements and noncompliance with continuing disclosure obligations Wenatchee, WA: Inaccuracies in the primary disclosure document resulting in $20,000 fine; first time SEC assessed financial penalties against an issuer Municipal Securities Rulemaking Board 11

12 MSRB Market Transparency Advisory Types of information issuers must publicly disclose under SEC Rule 15c2-12 for various types of offerings How to use EMMA to make these disclosures Benefits of timely and complete disclosures for issuers and investors alike msrb.org/rules-and-interpretations/regulatory- Notices/2013/ aspx Municipal Securities Rulemaking Board 12

13 MSRB Educational Resources Preparing to Submit checklist Making Financial Disclosures: A Guide for Issuers Guide to setting up financial disclosure reminders Protecting Market Access for Issuers Municipal Securities Rulemaking Board 13

14 Submitting Disclosures EMMA Dataport Municipal Securities Rulemaking Board 14

15 Video Tutorials Step-by-step support with submitting disclosure documents to EMMA Available in the Online Training section of the MSRB website Submitting Financial Disclosures Submitting Event-Based Disclosures Submission manuals also available on msrb.org Municipal Securities Rulemaking Board 15

16 Submitting Voluntary Disclosures Issuers may provide additional information to market participants on a voluntary basis via EMMA, including: Pre-sale information such as preliminary official statements or investor and rating agency presentations Information about the timing of and accounting standard used to prepare annual financials Investor website address Information about bank loans Municipal Securities Rulemaking Board 16

17 EMMA Tools for Issuers

18 Issuer Homepages Pilot! EMMA Issuer Homepages display issuer information in a single location Geographic search More intuitive access to information on issuers for EMMA users emma.msrb.org/ IssuerHomePage Municipal Securities Rulemaking Board 18

19 Issuer Homepage Features Listing of bond issues Trade activity Pre-sale documents Official statements Financial and event disclosures Refunding escrows Municipal Securities Rulemaking Board 19

20 Manage Issuer Homepages Customize and consolidate issuer information in a single location on EMMA Customize plain-english name of issuer and bond issues Edit issue list, contact information and website links Minimal annual maintenance needed receive alert when new issue is added to an issuer homepage Municipal Securities Rulemaking Board 20

21 Sign Up for Reminders Issuers can schedule automated s from EMMA to be reminded of approaching annual or quarterly financial disclosure filing deadlines Include additional contacts to ensure all those responsible for disclosures are alerted Municipal Securities Rulemaking Board 21

22 Export Trade Data Use EMMA Trade Monitor to export trade data from EMMA to a desktop application Analyze the prices, yield and amount of secondary market trade activity of municipal bonds Support evaluation of pricing for new issues Access with an organization account Municipal Securities Rulemaking Board 22

23 Coming Soon to EMMA

24 New Trade Price Tools Visualize historical trading trends Easily compare trade prices of securities with similar characteristics Municipal Securities Rulemaking Board 24

25 Resources

26 State and Local Government Toolkit Free resource designed for small to mid-sized issuers Videos, fact sheets and guides about Process of issuing municipal bonds Using the EMMA website Financial disclosure obligations msrb.org Municipal Securities Rulemaking Board 26

27 Contact the MSRB MSRB Online msrb.org emma.msrb.org MSRB Updates Subscribe at msrb.org MSRB Support Hours of Operation: 7:30 a.m. - 6:30 p.m. ET MSRBsupport@msrb.org Follow the MSRB on Municipal Securities Rulemaking Board 27

28 Putting EMMA to Work for You Justin Pica, Director of Product Management Municipal Securities Rulemaking Board GFOA Annual Conference Minneapolis, MN May 21, 2014

29 USING EMMA To Meet Your Continuing Disclosure Responsibilities May 21, 2014

30 City of Wichita Population: 385,000 City assets: $3.5 billion Operating Budget: $543 million 10-Year CIP: $2.4 billion Outstanding Debt: $894 million Pension Trust Funds: $1.3 billion Investment Portfolio: $300 million

31 Why Are We Talking About Disclosure? Issuers should adopt written procedures, applicable to all bond issues, which go beyond reliance on tax certificates. August 11, 2011 IRS Compliance Memorandum

32 Why Are We Talking About Disclosure? The board recommends that the [SEC] amend Rule 15c2-12 to impose consequences for [Issuer] non-compliance with continuing disclosure undertakings. August 8, 2011 MSRB letter to SEC

33 Why Are We Talking About Disclosure? Prior to 1986 Issuer said Yep, I ll follow the tax rules Prior to 1995 No ongoing disclosure mandated 1995 MSRB requires disclosure Hodgepodge of national repositories 2009 Creation of EMMA

34 Why Has It Taken Our Industry So Long? THIS STUFF IS BORING AND IT S COMPLICATED And the IRS, SEC and MSRB are interested

35 GFOA Best Practices Best Practices & Advisories Debt Management Disclosures in OS related to pension Maintaining an investor relations program Using a web site for disclosure Understanding your continuing disclosure responsibilities

36 Recommendations Adopt a continuing disclosure policy Talk to bond counsel Identify an it person Understand what you agreed to CDA CAFR? Supplement to CAFR? Make timely filings on EMMA 180 days Material event notices 10 days Voluntary information?

37 One Last Point Don t Over-Complicate Disclosure

38 Using EMMA to Showcase Your Government