Master the CPFO Debt Management Exam 2025 – Ace Your Finance Future with Confidence!

The primary purpose of a continuing disclosure agreement (CDA) is indeed to ensure timely communication of financial updates. This is crucial in the context of municipal bonds and other securities where issuers are required to provide ongoing disclosure about their financial status and operating performance after the initial sale of the bonds.

A CDA outlines the specific obligations of the issuer regarding the information they must regularly provide to investors, such as annual financial statements, material events that might affect the performance or value of the securities, and other significant updates related to the bond's status. This transparency helps to maintain investor confidence and supports an informed investor market, as it allows bondholders to have access to pertinent information that can affect their investments.

The other options do not reflect the primary function of a CDA. While finalizing bond issue terms, negotiating fees, or managing investor complaints may be components of broader financial operations, these activities are not the focus of a CDA. Instead, the CDA is strictly about maintaining the flow of information for accountability and transparency post-issuance.