What obligation do issuers have under SEC Rule 15c2-12 regarding their financial information?

Issuers are required under SEC Rule 15c2-12 to provide financial information in a timely manner and on a continuing basis. This obligation ensures that investors and the market have access to relevant financial data that can affect the assessment of the issuer's creditworthiness and the status of their debt.

The rule was implemented to enhance transparency in the municipal securities market. By mandating ongoing disclosure, the SEC aims to keep investors informed about the financial health of the issuer, which allows them to make more informed investment decisions. This obligation encompasses not only the initial offering documents but also periodic updates regarding the issuer's financial condition and any events that might materially impact the security.

Other options do not align with the requirements of the rule. For instance, limiting disclosure only upon request would contradict the intent of providing continuous and timely information, while maintaining secrecy until bonds are redeemed is against the spirit of transparency that the rule promotes. Similarly, focusing solely on intentions for future projects would not encompass the full scope of financial disclosures required under SEC Rule 15c2-12.