According to MSRB Rule G-17, what is one obligation of underwriters?

Underwriters have a responsibility to disclose risks associated with the transaction and to clarify their own role in the process, as mandated by MSRB Rule G-17. This rule emphasizes the importance of transparency and fair dealing in municipal securities transactions. By ensuring that issuers are fully informed about potential risks, underwriters help promote an understanding of the commitments being undertaken and the associated financial implications.

Disclosing their role allows underwriters to highlight that they are acting as intermediaries between the issuer and investors, and not as advocates for the issuer's interests alone. This obligation is designed to protect issuers and investors alike by fostering a marketplace that is founded on trust and clear communication regarding the complexities of the transaction. The requirement for transparency aligns with the overall intent of MSRB regulations, which aim to uphold high ethical standards and protect the integrity of the municipal securities market.