WASHINGTON — House and Senate conferees meeting to hammer out a financial regulatory reform bill appear to have reached an agreement that would allow the Municipal Securities Rulemaking Board to regulate financial advisers and other market intermediaries.

House conferees, led by Financial Services Committee chairman Barney Frank, D-Mass., late Wednesday backtracked from their preference of giving the Securities and Exchange Commission authority over these advisers. The back-peddling came after Senate Banking Committee chairman Christopher Dodd, D-Conn., said the MSRB is best suited to regulate FAs because of their specialized knowledge of the muni market and because they already have sufficient staff. In contrast, the SEC only has two full-time attorneys dedicated to muni regulatory issues.

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