Investors at the Same Address
If two or more investors in a security occupy the same address, dealers may provide that address with a single set of documents, provided the investors are addressed as a group (Joe Smith and household) and the investors consent in writing. Explicit consent is not required, however, if the investors are provided with 60 days’ notice and the notice contains this information:
• A toll-free telephone number that the investors can use to request otherwise
• The duration of the implied consent and how the investors may revoke it
• A promise to send individual copies within 30 days of the investors’ revocation of consent
• This statement in bold-face type on both the letter and the envelope: “Important Notice Regarding Delivery of Shareholder Documents”
As to municipal fund securities, dealers must explain at least once a year to investors who have consented to group mailings how they may revoke their consent.
Dealers are required to maintain and keep current any records evidencing compliance with this rule.
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Summary Table Underwriter Responsibilities |
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Responsibility |
Timeline |
Apply to Municipal Fund Securities? |
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Provide disclosures to the issuer |
Before or at the time that the engagement letter is signed |
Yes |
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Exact a pledge from the issuer to provide the official statement and the continuing disclosure document |
Before any sales take place |
Yes |
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Receive an official statement from the issuer |
Within seven days after a purchase agreement or equivalent is signed |
Yes |
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Review issuer’s official statement | ||