February 22, 1989
TO: UNIT INVESTMENT TRUST MEMBERS NO. 17-89
RE: SPONSOR'S DUTY TO DELIVER PROSPECTUSES
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We previously sent you a copy of an interpretive opinion
from the staff of the SEC, in which the staff affirmed its view
that a dealer selling shares of a unit trust must deliver a
prospectus if any person acting as an underwriter is maintaining
a secondary market in the shares. (See Memorandum to Unit
Investment Trust Members No. 8-89, dated January 23, 1989.) Some
members have inquired whether a sponsor of a unit trust has an
obligation to provide current prospectuses to any dealer for
delivery to its customers. Attached is a memorandum from counsel
to the Institute which concludes that a unit investment trust
sponsor is obligated to provide prospectuses to dealers upon
request.
Craig S. Tyle
Assistant General Counsel
Attachment