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Canadian Securities Course (CSC) Practice Exam · Question

A prospectus is a legal document that provides full, true, and plain disclosure of all material facts relating to a new issue of securities. Which party is primarily responsible for ensuring its accuracy?

The issuing company (issuer) is ultimately responsible for the accuracy and completeness of the prospectus. While underwriters and other parties perform due dil

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Question: A prospectus is a legal document that provides full, true, and plain disclosure of all material facts relating to a new issue of securities. Which party is primarily responsible for ensuring its accuracy?

Answer options:

  • The provincial securities commission
  • The underwriter ✅ The issuing company (issuer)
  • The investment dealer selling the securities

Correct answer: The issuing company (issuer)

Explanation: The issuing company (issuer) is ultimately responsible for the accuracy and completeness of the prospectus. While underwriters and other parties perform due diligence, the legal responsibility rests with the issuer.

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