Required Disclosures on Specific Transactions

What this video covers

• What material information means in practice, and why disclosure is a continuous conversation rather than a one-time document dump
• The six material aspects a representative must cover at recommendation: objective, risks, costs, tax treatment, surrender terms, and liquidity restrictions
• Why the statutory prospectus is "pushed" (default delivery at or before confirmation) while the Statement of Additional Information (SAI) is "pulled" (on request only, free of charge, within three business days)
• How a summary prospectus satisfies the delivery requirement by incorporating the statutory prospectus by reference
• Which material events trigger prospectus supplements (stickers), which require shareholder votes, and which use source-of-distribution notices
• What constitutes a control relationship, including proprietary funds where the broker-dealer (BD) or affiliate is underwriter, sponsor, or investment adviser
• Why suitability never excuses a control relationship disclosure failure, and the exact timing (at or before completion of the transaction) that Reg BI and FINRA fair-dealing rules require