SEC Extends Ban on Unfair Practices to Municipal Bond Advisers
This article is for subscribers only.
The Securities and Exchange Commission approved a rule barring financial advisers to state and local governments from engaging in deceptive practices, one of the first steps to regulate the business.
The decision applies the Municipal Securities Rulemaking Board’s so-called fair dealing rule to those advising officials who oversee debt issuance and investments. It bars deceptive, dishonest or unfair practices by bond dealers. The change takes effect immediately, the board said today in a statement.