WASHINGTON — New National Federation of Municipal Analysts Chair Scott Andreson plans to take on issuer disclosure and timeliness in his new role for 2019.
The federation plans to work and meet directly with the Securities and Exchange Commission’s Office of Municipal Securities to improve disclosure, one of its primary goals this year, he said.
Andreson, who is director of fixed income at American Family Insurance in Madison, Wisconsin, referred to SEC Chairman Jay Clayton’s comments at a December conference indicating that the SEC may be looking to take additional steps to improve disclosure in the muni market.
Clayton said in prepared remarks that he has asked OMS to work with the Municipal Securities Rulemaking Board to improve transparency and increase timeliness of issuer financial information. He added that some municipal issuers make their annual financial information available “significantly” after the end of the fiscal year.
“If you read Chairman Clayton’s comments regarding how delayed some of the CAFR’s (comprehensive annual financial reports) are — that’s just really unacceptable,” Andreson said.
Andreson said NFMA recognizes asymmetric disclosure — underwriters and rating agencies getting better disclosure than investors — and wants to work with the SEC and the MSRB to improve it.
NFMA also wants to improve MSRB’s EMMA site to make it more searchable, including improving the ability to search without using a CUSIP number.
Within the organization, Andreson wants more younger member participation within its committees and created the New Member Advancement Committee to promote involvement among new analysts.
“Our newer analysts, we had noticed, were less likely to volunteer and participate in committees,” Andreson said. He added senior analysts were more likely to participate in committees.
Andreson previously served the NFMA as vice chair, treasurer, secretary and chaired the Membership, Finance, Education and Annual Conference Committees.
Andreson said many of his mentors and peers in the industry were involved with NFMA and said he admired its goal to improve disclosure.
