How should a dealer disclose material information about an issuer to customers?

• A. Provide timely, accurate disclosures in a manner accessible to customers, including updates in Official Statements and EMMA.
• B. Release information only to high-net-worth clients.
• C. Post information internally and not to the public.
• D. Delay disclosure until after all offerings are completed.

Answer: (A)

The important idea is that dealers must share material issuer information with customers in a timely, accurate way that is accessible to the public. Material information—anything that could influence an investor’s assessment of the issuer or the debt security—should not be kept private or delayed. Using the official channels ensures broad, consistent access.

Official Statements are the primary disclosure document for new issues, outlining the issuer, the security, risk factors, and other critical details. EMMA is the MSRB’s online platform for continuing disclosures and updates from issuers. When new information emerges that could affect the issuer’s ability to meet its obligations or the security’s value, the dealer should promptly disclose it through these channels so all customers can evaluate it.

Choosing to disclose only to high-net-worth clients, posting information only internally, or delaying disclosure until after offerings are completed would undermine fair access to information and could mislead or disadvantage other investors.