Recommendations, Disclosures, and DPP Analysis

The third Series 22 chapter carries most of the exam weight. This is where the representative provides information about investments, analyzes the customer’s profile against available DPP options, provides the required disclosures, and communicates with the customer about the account. It is the core suitability and disclosure function of the exam.

Read this chapter as the decision-and-explanation layer of the DPP workflow. Start with the product itself, then move into customer fit, disclosure duties, and ongoing communication and record retention.

Series 22 section lessons

Use these section lessons as the main reading path for this Series 22 function. They follow the current DPP representative workflow and keep product facts tied to communication, suitability, disclosure, and documentation decisions.

In this section

• DPP Overview, Structures, and Offering Types
  Review Series 22 DPP structures, offering types, illiquidity, diversification, return components, sponsor economics, and investor motivations.
• Real Estate Programs: Benefits and Risks
  Study Series 22 real estate DPP categories, income and appreciation drivers, leverage, property risk, valuation, liquidity, and suitability pressure points.
• Oil and Gas Programs: Benefits and Risks
  Study Series 22 oil and gas DPP program types, working interests, royalty interests, commodity risk, reserves, tax benefits, and suitability constraints.
• Equipment Leasing, BDCs, and Other Programs
  Study Series 22 specialty DPP programs including equipment leasing, BDCs, debt programs, agriculture, entertainment, R&D, commodity pools, TICs, and DSTs.
• Investment Entities and Partner Rights/Obligations
  Study Series 22 LP, LLC, S corporation, partnership, TIC, DST, trust, and joint venture structures, including rights, obligations, transfer limits, and tax treatment.
• Evaluating DPPs and Program Economics
  Study Series 22 DPP economics: strategy, sponsor record, leverage, use of proceeds, expenses, reserves, distributions, liquidity, red flags, and market changes.
• Tax Treatment of DPPs
  Study Series 22 DPP tax concepts including pass-through treatment, K-1s, basis, passive losses, credits, depreciation, depletion, phantom income, 1031 exchanges, at-risk rules, and AMT.
• Suitability and Best Interest for DPP Recommendations
  Learn how Series 22 tests suitability and best-interest analysis for DPP recommendations, including profile review, concentration, liquidity, risk capacity, and fees.
• Disclosures, Fees, and Compensation
  Review Series 22 transaction disclosures, DPP fees, cash and non-cash compensation, carried interest, underwriting limits, and cost-presentation red flags.
• Customer Communications, Statements, and Recordkeeping
  Learn how Series 22 tests DPP customer communications, statements, K-1 timing, distribution-source disclosures, valuation limits, reinvestment options, and records.