Required Product Disclosures

What this video covers

• The four specific disclosures required when broker-dealers sell securities inside financial institutions: not Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insured, not a deposit or obligation, not guaranteed, and subject to investment risks including possible loss of principal
• Why NASAA created these rules in 1998 and how customer psychology inside a bank lobby creates the confusion that regulators are trying to prevent
• The exact timing for oral disclosure: before or at the time of the securities transaction
• The exact timing for written disclosure: on or before completion of the transaction
• The ongoing disclosure requirement on account statements and trade confirmations for the life of the account
• The critical and rule: why providing only oral or only written disclosure is a violation, never an either-or choice
• How to spot scenario-based exam questions that hand you a glossy brochure but skip the spoken words