WASHINGTON - The Investment Company Institute yesterday urged the Securities and Exchange Commission to both expand its proposed credit rating agency rules on structured products to municipal securities and to increase the secondary market disclosure requirements for the municipal market.

According to ICI, the SEC's proposed rules that would require credit rating agencies to disclose conflicts of interest highlight similar disclosure issues in the municipal market. In addition, the commission's proposal to take references to certain ratings out of its rules will put the onus of credit analysis more squarely on fund companies and other investors that will in turn need more up-to-date disclosures from municipal issuers.

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