Which term includes timely disclosure of material changes in a company's affairs and examination of prospectuses to ensure full, true and plain disclosure?

• A. Client Service
• B. Compliance
• C. Disclosure
• D. Financial Planner

Answer: (B)

Compliance is the function that ensures a firm and its people follow securities laws and exchange rules, including how and when to disclose material changes and how prospectuses are reviewed to guarantee information is full, true, and plain for investors. It sets the policies, processes, and controls that enforce timely continuous disclosure by public companies and the accuracy and clarity of disclosure documents. Client service focuses on relationships, a financial planner on advising, and disclosure is the act of revealing information itself; the question centers on the process and safeguards that ensure those disclosures happen properly, which is why compliance is the best fit.