If an adviser uses a summary prospectus, when must the full prospectus be delivered?

When an adviser uses a summary prospectus, the requirement is to deliver the full prospectus upon confirmation of the sale. This regulation ensures that investors have access to comprehensive information about the investment they are considering, allowing them to make informed decisions.

The summary prospectus is a concise version designed to highlight key information to attract investor interest, but it does not replace the need for a complete prospectus. Providing the full prospectus upon confirmation allows the adviser to ensure that the investor has all necessary details about risks, investment objectives, fees, and other pertinent factors just before they finalize their decision to invest. This timing also adheres to regulatory requirements designed to protect investors and promote transparent communication during the investment process.

While the full prospectus must be available, the timing of its delivery is crucial. It is not required at the initial meeting or before solicitation, as the summary is intended to initiate discussions and provide basic information. Consequently, delivering the full prospectus upon confirmation strikes a balance between encouraging investment and ensuring full disclosure.