MSRB Rules Practice Test

In the continuing disclosure process, what is the role of underwriters and advisors?

They facilitate the dissemination of information, but the issuer remains responsible. They only review disclosures after filing with regulators. They assume full responsibility for all disclosures. They have no role in continuing disclosure.

Correct Answer:

They only review disclosures after filing with regulators.

Explanation:

The main idea is that continuing disclosure responsibilities stay with the issuer, while underwriters and advisors serve as facilitators and reviewers rather than as the owners of the disclosures. In practice, these professionals help ensure the information is accurate and properly communicated, but the filing obligation and the duty to provide timely, complete disclosures lie with the issuer. They typically review the disclosures after they have been filed with regulators to confirm accuracy and understand what has been released, aiding dissemination and interpretation for investors. This means they do not take on primary responsibility for creating or filing the disclosures themselves.

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