Cross-border transactions and fair treatment requirement?

• A. Comply with applicable securities laws, MSRB rules, and ensure transparent, fair treatment of clients.
• B. Avoid disclosure to prevent liability.
• C. Treat all clients identically regardless of jurisdiction.
• D. Follow only domestic rules; foreign laws do not apply.

Answer: (A)

Cross-border transactions require adherence to all laws that apply to the client and the transaction, not just domestic rules. The key idea is to comply with applicable securities laws, plus MSRB rules, and to treat clients in a transparent and fair manner. MSRB rules emphasize fair dealing, full and fair disclosure, and ethical conduct in municipal securities. In practice, this means identifying which foreign laws apply, providing clear and complete disclosures, and avoiding any practice that could mislead or disadvantage a client. The other options miss the mark: hiding disclosures undermines fair dealing, claiming you must treat every client identically regardless of jurisdiction ignores differing legal obligations, and following only domestic rules overlooks foreign regulatory requirements.