Market participants slammed a proposal to assess a fee on broker-dealers to help finance the Governmental Accounting Standards Board, differing about whether regulations on dealers should be permitted to pass the fee along to other market participants, including issuers.

The Financial Industry Regulatory Authority’s GASB fee proposal highlighted divisions in the municipal market on funding the accounting standard-setter, with an industry group saying broker-dealers should be permitted to pass the assessments along to parties who use or benefit from GASB’s rules, including issuers. State and local government groups, meanwhile, urged the Securities and Exchange Commission to bar dealers from passing the fees through to them.

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