A proposal to modify the standard of independence for Municipal Securities Rulemaking Board members is inconsistent with federal law, the National Association of Independent Public Finance Advisors told the Securities and Exchange Commission on Sept. 12.

NAIPFA made the argument in new comments filed with the commission, in which NAIPFA president Jeanine Rodgers Caruso argues that MSRB’s proposal to loosen the standard of independence for public board members is a betrayal of legislative intent and inconsistent with the language of the Securities Exchange Act of 1934 as amended by Dodd-Frank. NAIPFA’s newest comments are in addition to previous input the group submitted in August, in which the group attacked the logic of the MSRB proposal and argued that the changes would undermine the MSRB’s function by stacking the board with “public” members sympathetic to broker-dealers.

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