An investor, Sarah, is considering purchasing a mutual fund. The dealer provides Sarah with the Fund Facts document on Monday, August 14th, at 10:00 AM. Sarah instructs her advisor to purchase the fund on Wednesday, August 16th, at 2:00 PM. Is the dealer compliant with the timing requirements for delivering Fund Facts?

Question: An investor, Sarah, is considering purchasing a mutual fund. The dealer provides Sarah with the Fund Facts document on Monday, August 14th, at 10:00 AM. Sarah instructs her advisor to purchase the fund on Wednesday, August 16th, at 2:00 PM. Is the dealer compliant with the timing requirements for delivering Fund Facts?

Answer options: ✅ Yes, because the Fund Facts was delivered before the purchase instruction.

• Yes, because the Fund Facts was delivered within two business days of the purchase instruction.
• No, because the Fund Facts must be delivered exactly two business days before the purchase instruction.
• No, because the Fund Facts must be delivered at the point of sale, not before.

Correct answer: Yes, because the Fund Facts was delivered before the purchase instruction.

Explanation: NI 81-102, Section 4.1(1), states that the Fund Facts must be delivered no later than two business days after the dealer receives the purchase instruction. Delivering it before the instruction is always compliant.