WASHINGTON — Independent financial advisers are warning the Securities and Exchange Commission that the Municipal Securities Rulemaking Board’s proposed changes to Rule G-23 contain loopholes that would allow dealer-financial advisers to switch roles and become underwriters in the same muni transactions.

Broker-dealer groups, however, are questioning the need for the rule changes and worry they go too far. They are urging the SEC and MSRB to exempt small issuers and competitive transactions from the proposed changes, which generally would prohibit dealer-FAs from becoming underwriters in the same muni transactions.

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