Investment Company and Mutual Fund Communications

What this video covers

• Why the Securities Act registration requirement matters for fund advertising, and how strict liability applies when a rep violates it
• What the Securities and Exchange Commission (SEC) investment-company sales-material rule prohibits, including the four trap areas: performance portrayals, management claims, benefits versus risks, and fees and expenses
• How the open-end-fund-advertising rule works as an omitting prospectus, and the mandatory 1-year, 5-year, and 10-year standardized total return formula
• What the summary-prospectus rule allows funds to deliver, and the hard 3-business-day deadline to send the full statutory prospectus upon request
• How supplemental sales literature differs from a summary prospectus, and why it must accompany or follow a statutory prospectus
• When the SEC's generic fund-advertising safe harbor applies, and the critical distinction that specific fund ads are prospectuses while generic ads are not
• Why filing an advertisement with the Financial Industry Regulatory Authority (FINRA) does not change its prospectus status under SEC rules