Friday, June 26, 2009

Prospectus Delivery

It's Friday morning and, as usual, I'm at the FINRA website looking for rule changes and recent disciplinary actions that relate to testable points. And, as usual, it only took a few seconds to find what I'm looking for.

Remember that the Securities Act of 1933 and the Uniform Securities Act are predicated on full disclosure of material facts in the offer and sale of securities and in the solicitation and rendering of investment advice. When investors are mislead or kept in the dark about important facts, the regulators get bent out of shape, as well they should. This morning I see that a fine broker-dealer recently got its wrists slapped over their failure to deliver prospectuses in a large number of transactions. You can read the announcement at the link below. Also, note that in most IPOs these days, the issuer can simply post the prospectus online, but for ETFs and mutual funds, a hard copy prospectus still needs to be delivered.

Enjoy. I'm off to the office to prepare for the Friday Free Broadcast.

The announcement is at:

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