WASHINGTON — The Municipal Securities Rulemaking Board Tuesday said it is contemplating a rule change that would prohibit dealers from underwriting new negotiated or competitive bond issues if they served as the issuer's financial adviser on the transaction.
The MSRB is seeking public comment on the draft changes to its controversial Rule G-23 through Sept. 30. The proposal, which would completely reverse the existing rule, would eliminate what some supporters of the restrictions have described as routine business practices in certain states. Those include Colorado and Texas, in which dealer-FAs generate underwriting work by first serving as an issuer's financial adviser.
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