Quick Answer
Product and account disclosures depend on what the customer holds or transacts in the account. Operations identifies the securities product and provides its applicable disclosure, including the disclosure for an illiquid security. Options accounts require the options disclosure document, while mutual fund disclosure is provided through the mutual fund prospectus.
The product or account context drives the disclosure that must accompany it.
Securities Products and Product-Specific Disclosures
- Securities products: Identify the product held or transacted in the account, then identify the disclosure applicable to that product.
- Illiquid securities: Provide the product-specific disclosure applicable to an illiquid security.
Product identified -> applicable product-specific disclosure identified.
Account-Specific Disclosures
| Disclosure | Account or product context |
|---|---|
| Options disclosure document (ODD) | Options account disclosure. |
| Mutual fund prospectus | Mutual fund disclosure. |
Exam Tip: Gotchas
- Match the disclosure to the account or product. The ODD is the options-account disclosure; the mutual fund prospectus is the mutual fund disclosure. Do not substitute one for the other.