ALEXANDRIA, Va. — Non-dealer municipal advisors contend some muni bond underwriters are engaging in financial advisory activities with an issuer, despite a Municipal Securities Rulemaking Board rule prohibiting them from serving in both roles in the same transaction.

The MAs cited, as an example, a copy of a 2012 investment banking contract in which a dealer agreed to underwrite an issuer’s bonds and to provide services that are similar to those traditionally provided by an MA. The advisors would not identify the parties involved, but provided The Bond Buyer with a redacted copy of the contract, called an “Investment Banking Services Engagement Agreement.”

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