Investment Company Communications

What this video covers

• The four-part disclosure block (objectives, risks, charges, and expenses) that transforms a qualifying investment company advertisement into a deemed prospectus under the Securities Act of 1933, and what happens when it is missing
• Standardized performance presentation: why 1-, 5-, and 10-year average annual total returns are mandatory, and why a 1- and 3-year chart fails automatically
• How the sales-literature anti-fraud rule deems technically true facts misleading through selective presentation, unbalanced benefits-and-risks, or past-performance-as-guarantee treatment
• The supplemental sales-literature rule under the Investment Company Act of 1940, and how it bridges all fund sales literature into federal anti-fraud liability as a filed document
• The four simultaneous charging routes for misleading fund advertising: FINRA communications framework, Securities Act sales-literature anti-fraud rule, Investment Company Act supplemental rule, and Securities Act broad anti-fraud provision
• Why the SIPC logo is strictly barred for non-SIPC member broker-dealers, and how the exam tests this as a negative rule