Required Disclosures on Specific Transactions

What this video covers

• What constitutes a material fact under the reasonable investor standard, and why omitting fees, risks, or conflicts constitutes fraud under the Securities Exchange Act antifraud provisions
• The structural difference between the prospectus (Part A, delivered automatically) and the Statement of Additional Information (SAI) (Part B, delivered only upon request at no charge)
• What detailed content lives inside the SAI: financial statements, portfolio holdings, management compensation, fund policies, and tax information
• Which events trigger municipal continuing disclosure, and why filings go through EMMA (Electronic Municipal Market Access), the Municipal Securities Rulemaking Board (MSRB) system, rather than the Securities and Exchange Commission (SEC)
• What defines a control relationship between a broker-dealer and an issuer, and the strict timing requirement to disclose it before or at the time of the transaction
• How exam questions test jurisdictional ownership of EMMA and the automatic-versus-on-request delivery distinction for mutual fund documents