What is the obligation to provide investor education in muni transactions?

• A. Investor education is optional in muni transactions.
• B. Dealers should offer clear, accurate information to help investors understand risks and features.
• C. Investor education is solely the issuer's responsibility.
• D. Dealers should withhold risk details from investors.

Answer: (B)

Clear, accurate investor education is required in muni transactions. Dealers must provide information in plain language that helps investors understand the risks and features of municipal securities, so they can make informed decisions. This aligns with the MSRB standard of fair dealing and full disclosure, covering key topics such as credit risk, interest-rate risk, liquidity, call provisions, yield mechanics, and any features that could affect value. It isn’t optional or the issuer’s sole responsibility—the dealer has a duty to present material information and not withhold risk details. By prioritizing clear education, the industry supports investor protection and more informed investment choices.