(Updated on 3/3/10 10:00 a.m.)
The Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) are teaming up to more closely monitor and regulate the municipal bond market and industry.
SEC Chairman Mary Schapiro and IRS Commissioner Doug Shulman signed a Memorandum of Understanding (MOU) on March 2 which the two agencies say is designed to improve compliance with SEC and IRS rules and regulations related to municipal securities. The SEC states in its release announcing the venture that the muni bond market currently totals about “$2.8 trillion in outstanding securities and continues to grow in complexity and size.”
“Through cooperative relationships like this, we are better positioned to protect investors and ensure they are getting the information they need when investing in municipal securities,” said Schapiro, in the release.