Disclosures
Chapters in this video
- 0:00 The three disclosure documents for packaged products
- 0:43 The prospectus as investment nutrition label
- 1:01 What the prospectus contains: objectives, risks, fees, performance
- 2:08 Delivery timing trap: before or at sale, never after
- 2:27 Summary prospectus versus statutory prospectus
- 3:09 Statement of Additional Information (SAI): the detailed supplement
- 3:48 The master delivery table: automatic versus upon request
- 4:57 Rapid-fire exam recap
What this video covers
- Why the prospectus is the primary disclosure document for mutual funds and variable annuities, and what investment objectives, risks, fee table, performance history, and redemption instructions it contains
- The exact delivery timing rule (before or at the time of sale) and why "after the sale" is always the wrong answer choice
- How the summary prospectus differs from the full statutory prospectus, and what instructions it must include so investors can obtain the comprehensive version
- What the Statement of Additional Information (SAI) contains: detailed financial statements, director and officer backgrounds, tax information, policies, and legal details
- Why the SAI is delivered only upon request, never automatically, and how to spot the exam trap that confuses automatic versus on-request delivery
- How to read the master delivery table and distinguish which documents are automatically provided, when, and at what content level
Read the full lesson, free
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