The Municipal Securities Rulemaking Board’s interpretive guidance to its G-17 fair-dealing rule that took effect last year was “over-lawyered” and has caused widespread criticism from issuers of municipal bonds, the head of the Municipal Securities Rulemaking Board said Thursday.

“The people we seek most to protect, [issuers], are almost the ones [that have] complained the most loudly about not liking this rule,” MSRB executive director Lynnette Kelly told participants at an education and outreach event for market participants held in Dallas with the Municipal Advisory Council of Texas.

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