If Congress decides to legislatively authorize federal regulation of independent, unregulated financial advisers, it should recognize that there are "fundamental differences" between them and dealer-affiliated advisers, the National Association of Independent Public Finance Advisers said in a recent letter to lawmakers.

NAIPFA made clear it is opposed to any attempts to regulate independent FAs but said, in a resolution and the letter, that it wants to work with Congress if members push for legislation.The letter was sent to key lawmakers on the House Financial Services and Senate Banking committees. It urged them to recognize that independent FAs "are not employed, given direction or controlled" by a broker-dealer, are charged only with providing financial advice and not selling a particular security, and have a fiduciary obligation to act solely in the best interests of the issuers they represent "rather than representing both the buyer and seller of securities which is a conflict of interest."

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