Dec 20 (Reuters) - A bipartisan group of U.S. lawmakers lobbed sharp criticism over proposals by the Securities and Exchange Commission to regulate the financial advisers to state and local government, saying they go too far and would be too costly.
"As proposed, the rules would impose wholly unnecessary and duplicative layers of regulation on parties that are already heavily regulated and would impose undue burdens and costs for many market participants," said a letter signed by 34 members of the U.S. House of Representatives and sent to the SEC. The letter was dated Monday and released on Tuesday.
The Dodd-Frank financial reform law passed last year called for advisers in the $3.7 trillion U.S. municipal bond market to register with the federal government and follow many of the same regulations as brokers, underwriters and dealers.
Since the SEC began considering in December 2010 how to carry out the adviser requirements, many in the market have worried the
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