The Government Finance Officers Association's executive board on Friday adopted guidance that strongly discourages an issuer from allowing a dealer-financial adviser to switch roles and become the underwriter in a negotiated municipal bond transaction.

The guidance, stemming from concerns about "inherent conflicts of interest" in such role switching, was formally adopted Friday at the group's board meeting in Chicago. It came about four months after the group's committee on governmental debt management proposed it in two recommended practices - one on the selection of FAs and the other on the selection of underwriters for negotiated transactions.

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