The BDA urged the SEC to delay the implementation of changes to Rule G-23 until the new fiduciary duty of municipal advisors is more clearly delineated, because that may eliminate the need for any changes to Rule G-23. If changes to G-23 do move forward, the BDA urged the SEC to allow financial advisors to serve as underwriters in competitive deals, especially where smaller and more infrequent issuers are involved. The BDA also urged a 1-year, rather than 6-month, transition period. The BDA also included comments critical of the proposed Guidance by the MSRB that is intended to help in the determination of when a firm is acting as an advisor or as an underwriter. The BDA criticized the Guidance because it does not provide the clarity that firms need. The BDA’s comment letter is available here.
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