FINRA offers a voluntary tool that can help remind your firm or client to disclose - either in writing or in discussion - material information about a bond to customers.  The checklist lists such items as:  terms and features, ratings and ratings changes, the existence of bond insurance or credit or liquidity enhancements, the bond's price and yield, interest payments, tax implications, call provisions and other material risks, including risk of default.  It also provides a template firms may wish to use to document time-of-trade disclosures made to customers.

    Material Information Sources.  FINRA identifies the following:  EMMA, NRMSIRs (rating agencies), established industry sources.

    Items to be Discussed with Customer.   Areas include:  bond features, disclosure filings, rating, bond insurance, pricing yield, interest payments, tax implications, call provisions, risks.

The above is intended to be very high level.  To access the "Municipal Bond Sales in the Secondary Market  Checklist for Customer Disclosure," click onto:   [ FINRA Small Firms Information, 10/4 ]