Statement of the Commission Regarding Disclosure of Year 2000 Issues and Consequences by Public Companies, Investment Advisers, Investment Companies, and Municipal Securities Issuers

The Securities and Exchange Commission (``we'' or ``the Commission'') is publishing guidance for public companies, investment advisers, investment companies, and municipal securities issuers regarding their disclosure obligations about Year 2000 issues. This release provides guidance to public companies so they can determine whether their Year 2000 issues are known material events, trends, or uncertainties that should be disclosed in the Management's Discussion and Analysis of Financial Condition and Results of Operations (``MD&A'') section of their disclosure documents. This release also sets forth our guidance regarding specific matters for companies to address in their MD&A Year 2000 disclosure. In addition, we address the need for companies to consider the Year 2000 issue in connection with other rules and regulations and when they prepare financial statements. Finally, we remind municipal securities issuers, as well as public companies, investment advisers, and investment companies, that the anti-fraud provisions of the federal securities laws apply to disclosure about the Year 2000 issue. This guidance supersedes the current staff guidance in revised Staff Legal Bulletin No. 5 (``Staff Legal Bulletin'').