Periodic Statements for Municipal Fund Securities
For municipal fund securities, a written confirmation is not immediately required. However, the dealer must provide the customer with a written statement disclosing the required confirmation information within five business days after the end of each quarterly or monthly period.
When a customer purchases a municipal fund security, the confirmation statement must show the total purchase price paid by the customer. Commissions are not included in the price. When a customer redeems a municipal fund security, the confirmation statement must contain the total sale price or redemption amount paid to the customer, again, not including any commission. In addition, periodic confirmation statements should disclose all the information required in a normal confirmation, as discussed above, for each purchase, sale, redemption, or investment on the account during the reporting period. The dealer and customer information need only appear once on each periodic statement, however.
Some customers may be purchasing municipal fund securities through a group of individuals who designate one individual to make periodic purchases on behalf of the group. For such an arrangement, the dealer has special obligations to the group. The dealer must:
- • Provide the designated individual with written notice of the receipt of the total amount paid by the group
- • Provide a quarterly written statement identifying that the dealer has not re