According to MSRB Rule G-23, what restriction is placed on firms regarding municipal advisory services?

The correct answer highlights the requirement that firms must maintain a clear separation between their roles when acting as municipal advisors and underwriters. This is essential to ensure that the advice provided to the municipality is unbiased and solely in the best interest of the issuer, without any conflicting interests that might arise from also acting as an underwriter.

The separation of roles is crucial because it minimizes the risk of conflicts of interest. If a firm were allowed to serve simultaneously in both capacities, it could potentially prioritize its financial interests over the needs of the municipality, leading to reduced accountability and transparency in the advisory process.

This principle aligns with the broader objectives of the Municipal Securities Rulemaking Board (MSRB), which seeks to protect municipal entities and their constituents by ensuring sound financial practices and ethical advisory services. By enforcing this separation, the MSRB aims to enhance the overall integrity of municipal finance markets.