SEC and IRS agree to work more closely in municipal bond enforcement

By Marisa Wong

Milwaukee, March 2 - The Securities and Exchange Commission and the Internal Revenue Service announced that they have agreed to work more closely together to monitor and regulate the municipal bond market and industry.

SEC chairman Mary Schapiro and IRS commissioner Doug Shulman signed a memorandum of understanding on Tuesday to improve compliance with SEC and IRS rules and regulations related to municipal securities.

"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," Schapiro said in the announcement.

"This memorandum reflects the commitment both agencies have in using all means possible to ensure the municipal bond market operates in accordance with all the laws that govern it," Shulman added.

The SEC and IRS will work cooperatively to identify issues and trends related to tax-exempt municipal bonds and to develop strategies to enhance performance of their respective regulatory responsibilities. The two agencies will work through a tax exempt bond/municipal securities committee to discuss policy, procedures and compliance issues.

The SEC and IRS will also share information as appropriate regarding market risks, practices and events related to municipal securities.

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