July 5 (Reuters) - Underwriters of U.S. municipal bonds should start complying with strict disclosure rules that help protect issuers from conflicts of interest as soon as possible and before the formal deadline of Aug. 2, when the regulations go into effect, a trade group recommended.
The Municipal Securities Rulemaking Board (MSRB) wrote the new rules, which its chairman, Alan Polsky, said were the "biggest development" in protecting state and local governments that has been achieved since the self-regulatory group was created in 1975. [ID:nL1E8G78IE].
In a report issued Tuesday, the Bond Dealers of America said, "We believe that it only makes sense that underwriters should only be required to deliver the disclosures with respect to transactions that have not yet priced."
But the trade group said it was recommending an early start because the new rules do not make it clear how pending transactions are affected.
The regulations come after a string of high-profile
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