WASHINGTON — Several market groups see a draft investor-protection bill that would require a majority of public members on the Municipal Securities Rulemaking Board as an opportunity to increase their influence over the self-regulatory organization, though the Securities Industry and Financial Markets Association is concerned about such a change.

The draft bill, which was publicly released on Oct. 1 by Rep. Paul Kanjorski, D-Pa., chairman of the House Financial Services capital markets subcommittee, would require that within six months of its implementation, the MSRB switch from a 15-member board dominated by 10 representatives of bank-dealer and securities-dealer firms to one in which no less than eight of its members are “public” representatives.

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