Within how many days must issuers inform underwriters of material changes in the POS?

The correct answer pertains to the requirement for issuers to inform underwriters of material changes in the preliminary official statement (POS). Under federal securities law, issuers are obligated to communicate any significant updates or changes that may impact the offering. Specifically, the timeframe set forth for these notifications is crucial for maintaining transparency and ensuring that underwriters have the most current information to assess the merits of the transaction. This requirement, therefore, mandates that issuers notify underwriters within a specified period after the finalization of the transaction, which is typically indicated as 25 days after the closing.

Notifications beyond this timeframe would not meet the regulatory requirement, potentially exposing the issuer to compliance issues. As such, the obligation to inform underwriters of material changes within 25 days post-closing is designed to uphold the integrity of the bond issuance process by ensuring that all parties involved are working with the most accurate and updated information available.