General Securities Sales Supervisor (Series10) Practice Exam

Under MSRB rules, which piece of information is NOT required on a customer confirmation?

1. CUSIP number

2. Telephone number of dealer

3. The issuer's revenue projections

4. If the bonds are "ex legal"

The correct answer is: The issuer's revenue projections

In the context of the Municipal Securities Rulemaking Board (MSRB) regulations, customer confirmations serve as essential documents for transparency in the transaction between dealers and their clients. One critical aspect of these confirmations is that they must include specific details to inform the customer adequately about the securities being traded. The correct choice indicates that the issuer's revenue projections are not required to be included in the customer confirmation. This is because confirmations focus on transactional information pertinent to the purchase or sale of securities rather than providing detailed financial analyses or forecasts about revenue that an issuer might anticipate. Revenue projections can vary and are often speculative, so including them could lead to confusion or misinterpretation by customers about the security's actual value. On the other hand, including the CUSIP number is essential because it uniquely identifies the bonds involved, allowing for precise tracking and settlement. The dealer's telephone number is also required, ensuring that clients can easily reach the dealer for question clarifications or further communication. Additionally, indicating if the bonds are "ex legal" provides important disclosure regarding the status of the bonds, which can affect their validity and the obligations of the parties involved. Therefore, the requirement of the CUSIP number, the dealer's contact information, and the designation of bonds as ex