US municipal bond experts have defended underwriting
communications threatened by pending US Securities &
Exchange Commission (SEC) clarification of the term municipal
Municipal Securities Rulemaking Board (MSRB) Rule G-23 prevents
municipal advisers from underwriting municipal securities.
However panelists at a Securities Industry and Financial
Markets Association conference on September 27 said the inverse
should be allowed, assuming advice is defined broadly.
Kenneth Gibbs, municipal securities group president at
Jefferies & Company, said advice is an integral part of the
underwriting service. "I think [the rule...