What is a Free Writing Prospectus (FWP) in municipal offerings?

• A. A document that provides information about a new issue beyond the final Official Statement, used under certain conditions.
• B. A document that replaces the Official Statement in all municipal offerings.
• C. A confidential memo intended only for underwriters.
• D. A marketing piece used to solicit investors.

Answer: (A)

A Free Writing Prospectus is a written communication about a municipal issue that supplements the final Official Statement by providing information not contained in the Official Statement. It’s used to share additional details or updates about the new issue under specific conditions, without replacing the Official Statement itself. This makes FWPs a permissible tool to inform investors more rapidly during the offering process, while still adhering to regulatory requirements about disclosure and filing. It isn’t a confidential memo for underwriters, it isn’t simply a marketing piece, and it isn’t meant to replace the Official Statement.