SIE Overview of the Regulatory Framework Question 10: Answer and Explanation

Question: 10

Which of the following statements is true regarding MSRB Rule G-10 – Delivery of Investment Brochure?

• A. The investor brochure will be provided to an investor who submits a written complaint regarding a municipal securities transaction.
• B. The investor brochure will be provided once each calendar year to every municipal securities customer.
• C. Every broker, dealer, and municipal securities dealer shall annually provide a statement that the firm is registered with the Department of the Treasury.
• D. Every municipal adviser shall annually provide a statement that that the firm is registered with the Federal Reserve.

Correct Answer: A

Explanation:

A: Choice A is correct because receiving a written complaint regarding a trade of municipal securities necessitates the provision of a copy of the investor brochure to the customer. Choice B is incorrect because the annual requirement is that the customer must be provided with a statement in writing that the investor brochure is available on the MSRB website. Choices C and D are incorrect because the requirement is to state that the firm is registered with the MSRB and the SEC.