In the aftermath of dramatic losse at investors in bond markets last year.

In the aftermath of dramatic losse at investors in bond markets last year, securities professionals and their customers who invest for city, state and other municipal pension stores are trying to settle forward the ground rules for allocating responsibility.

Dealer responsibilities have lately been clarified as a eventuate of a new suitability interpretation promulgated by dint of the National Association of Securities Dealers (NASD) in Washington. These of recent origin guidelines state explicitly that beneath normal circumstances, there is an arm's-length relationship between dealer and institutional customer. As a counterparty to transactions with their customers, dealers do not have any fiduciary obligations nor do they perform the function of investment advisor.

Still, substantial legal and ethical standards apply to dealers when they barter securities to any customer. These include provision of a clear and entire description of the securities being sold the price of the instrument give vent toed in a market-transparent format, disclosure