MSRB Rule G-47 Time of Trade Disclosure Mandate
Under MSRB Rule G-47, when must a broker-dealer disclose to a customer all material information known about a municipal transaction?
MSRB Rule G-47 mandates that all material information reasonably available must be disclosed to the customer AT OR PRIOR TO the time of the trade, either orally or in writing.
Complete Analysis & Legal Rationale
Disclosing material credit risks or bond features (e.g. call provisions, bond insurance status, rating downgrades) on the confirmation AFTER the trade occurs is a regulatory violation. Disclosure must happen before trade execution.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Disclosures must occur at or prior to trade execution (time of trade).
Confirmations arrive after the trade is binding, violating Rule G-47.
30 days after settlement is completely non-compliant.
Disclosure is an affirmative regulatory duty, not conditioned on customer request.
Official Standard: Affirmative duty to disclose all material facts before trade execution.