The BDA submitted a comment letter to the SEC in response to their request seeking approval or disapproval of MSRB Proposed Rule G-42 which would establish the core duties of municipal advisors when providing municipal advisory services to state and local governments and other clients.
In its letter to the SEC, the BDA reiterates our concern with the Proposed Rule’s absolute ban of related principal transactions and urges the Commission to disapprove the Proposed Rule so that the MSRB can redesign a more reasonable conflicts of interest regime.
Specifically, the BDA believes:
- The proposal that certain principal transactions be banned is out of step with how the duty of loyalty is managed with other fiduciaries.
- A different approach should be considered by the MSRB and this approach should involve and engage the client and require appropriate disclosures and informed consents.
You can read our full letter here.
09-11-2015