Longer (better explained) answer:
Recent changes in federal law make it more important than ever to have a truly independent Financial Advisor working for your local government when issuing bonds. Only registered “Municipal Advisors” (the term used by the feds to refer to financial advisors) have a federal fiduciary obligation to put your local government’s interest first! So having one involved from the beginning is important.
Broker-dealers, underwriters and bond counsel may sometimes be mistaken as “financial advisors,” but such parties may have conflicts of interest that may not be in the municipality’s best interests and can result in the local government paying significantly higher interest rates.
So … how can a city clerk, city manager or finance officer ensure that they have hired a truly independent Financial Advisor? Fortunately, the MSRB (Municipal Securities Rulemaking Board) has a list that helps identify who is a truly independent Municipal Advisor. To review the list, click the AdvisorCheck button.