U.S. Municipal Advisers Face Bar on Splitting Fees With Banks

Financial advisers to U.S. state and local governments would be banned from splitting fees with banks under rules proposed by the regulator of the municipal bond industry.

The rules put forth today by the Municipal Securities Rulemaking Board for the first time spell out the codes of conduct that will apply to financial advisers under the Dodd- Frank law passed by Congress a year ago. The act gave the board power over advisers, which previously operated without such oversight.

The board’s proposed rules are subject to approval by the Securities and Exchange Commission.

To contact the reporter on this story: William Selway in Washington at wselway@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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