What is a fundamental requirement of MSRB advertising?

• A. Communications must be truthful, not misleading
• B. Advertising must be approved by issuer
• C. Disclosures are optional in most ads
• D. Only retail ads require truthfulness

Answer: (A)

Communications about municipal securities must be truthful and not misleading. This standard protects investors from being caused to rely on false or incomplete information, ensuring fair and accurate portrayals of risk, safety, and potential returns. In practice, any claim—whether about guarantees, safety, yields, or performance—needs to be supported by facts and presented with appropriate context and disclosures when material. Ads should not imply issuer endorsement or approval, and they should avoid omitting information that a reasonable investor would consider important. Disclosures aren’t optional when they’re necessary to prevent deception, and this obligation applies to all advertising, not just certain types or audiences.