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Realities of small, infrequent muni issuers can make safeguarding them a challenge
['Senior Reporter', 'Buy-Side Specialist', 'Northeast Reporter', 'Staff Writer', 'Southeast Reporter']
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However, many smaller, less frequent issuers don't use a municipal advisor when accessing the new issue market.
Small, infrequent issuers may decide – perhaps after being told so – that a municipal advisor is an unnecessary expense.
Unlike some larger issuers, small, infrequent issuers lack the staff expertise that can help them do well in a bond sale, Sudsina said.
Underwriters aren't allowed to discourage issuers from using a municipal advisor, he noted, referencing information contained in a Municipal Securities Rulemaking Board interpretive notice .
The matter involved "unfair conduct" by FMI "in connection with underwriting municipal bonds for municipal issuers," a December 2020 SEC order said.