Welcome to Required Disclosures, the unit that covers everything securities professionals must tell their clients (and what they must never say).
Exam Weight: 20% (12 questions, shared across Units 11-13)
What You'll Learn
In this unit, you'll cover:
- Required Product Disclosures: Disclosures required at financial institutions (the FDIC/NCUA "not insured" disclosures), trade confirmations, and account statements
- Unlawful Representations Concerning Registration: Why registration never equals approval, and the statements that will get you in trouble
- Performance Guarantees Prohibition: The line between stating a bond's coupon rate and guaranteeing investment returns
- Filing of Sales and Advertising Literature: The Administrator's authority to require pre-use, concurrent, or post-use filing of marketing materials
- Recordkeeping Requirements: The state's authority over broker-dealer records and how it interacts with the governing federal standards
Why This Matters
Communication with customers is the single heaviest-weighted section on the Series 63, accounting for 20% of all scored questions. The exam tests whether you know exactly what must be disclosed, when it must be disclosed, and what statements cross the line into unlawful territory. Mastering these rules is essential for passing.
Let's start with the specific product disclosures required when selling securities.