WASHINGTON — Some broker-dealers and some issuers have distorted the truth about the municipal advisor rule, said a former Securities and Exchange Commission lawyer who worked on the new regulatory regime.

Dave Sanchez, who worked in the SEC's muni office from 2010 through 2013 and who has spent the last year general counsel to investment banking firm De La Rosa & Co. discussed the industry's reaction to the rule with the Bond Buyer shortly before its final effective date July 1. SEC muni chief John Cross has publicly acknowledged Sanchez's extensive involvement in developing the rule, which was unanimously approved by the commission and released in fall 2013 to great anticipation. Reaction from dealers and some other market participants quickly turned negative, a response Sanchez said is "disappointing."

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