Underwriters often push municipal issuers not to hire financial advisors and, if an issuer insists on working with one, prod them to retain broker-dealer FAs, an independent FA firm warned a Securities and Exchange Commission member earlier this month.

John Bonow, a managing director at Public Financial Management,Inc. in Seattle, told SEC commissioner Elisse Walter in an Oct. 6 letter that the pressure stems from the “economic interplay” at work in municipal financings.

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