A growth-oriented fund with no dividend history focuses on capital appreciation and typically reinvests earnings, providing little to no current income. This directly contradicts the client’s stated need for supplemental income now. The other options either provide income (bonds, balanced fund) or offer both income potential and capital preservation features (the variable annuity with the GLWB).

Past performance is not indicative of future results. Implying confidence in future outperformance based solely on past results is misleading and violates FINRA rules on communications with the public. The other statements are factual presentations of historical data or cost analysis, which are permissible if accurate and in proper context.

For a risk-averse investor who cannot afford any loss of principal, the fundamental risk of a variable annuity is paramount. Variable annuities invest in subaccounts (like mutual funds), whose values are not guaranteed and will fluctuate with market conditions. He could lose money, including principal. This directly conflicts with his stated risk tolerance and must be thoroughly understood, even if it means the product is unsuitable for him.

“REINVEST” on a statement specifically refers to a dividend or capital gains distribution that the shareholder has elected to have automatically used to purchase additional shares of the fund at the net asset value, rather than receiving the distribution in cash. It is not a new cash investment by the customer.

12b-1 fees, named for the SEC rule that permits them, are annual fees deducted from a fund’s assets to cover distribution and marketing costs (such as compensating brokers) and sometimes shareholder service expenses. They are part of a fund’s ongoing operating expenses, not redemption fees (which are sales loads) or portfolio management fees (which are separate).

Dollar-cost averaging is the strategy of investing a fixed dollar amount at regular intervals, regardless of the share price. This results in buying more shares when prices are low and fewer when prices are high, averaging the cost per share over time. A voluntary accumulation plan allows periodic investments but doesn’t emphasize the cost-averaging strategy as its primary benefit.

Representatives must promptly update their Form U4 (filed via the CRD system) with material changes to their information, including a change of residential address. Customer complaints about performance are not necessarily reportable unless they become formal written complaints alleging misconduct. Internal disciplinary actions like a verbal warning are not reportable unless they involve allegations of conduct violating securities rules.

Open-end mutual fund shares are redeemed (sold) directly with the fund company at the next calculated net asset value (NAV) per share after the order is received. The POP (which includes the sales load) is for purchases only. The fund’s prospectus may specify a redemption fee (a back-end load) that would be deducted from the proceeds, but the basis for the calculation is the NAV.

The objective of “high current income” indicates a focus on investments that generate regular interest or dividend payments. Long-term bonds, particularly corporate or higher-yielding government bonds, typically provide higher current income compared to money market instruments (lower income, stability) or growth stocks (little to no income). Municipal bonds from a single state would be for tax-free income, not necessarily “high” taxable income.

A growth-oriented fund with no dividend history focuses on capital appreciation and typically reinvests earnings, providing little to no current income. This directly contradicts the client’s stated need for supplemental income now. The other options either provide income (bonds, balanced fund) or offer both income potential and capital preservation features (the variable annuity with the GLWB).0