April 12, 1989
TO: STATE SECURITIES MEMBERS NO. 11-89
RE: NEBRASKA SALES REPORT FORM
__________________________________________________________
As you may remember, effective August 1, 1988, Nebraska
adopted a provision that allows indefinite registration of mutual
fund shares. (See Memorandum to State Securities Members No. 12-
88, dated April 26, 1988; State Securities Members No. 24-88,
dated August 1, 1988).
The indefinite registration provision provides that a
registrant may register an indefinite amount of securities if the
registrant pays a registrtion fee equal to the amount of its
Nebraska registration fee for the preceding year. Within sixty
days after the registrant's offering expires, each registrant
would be required to file a sales report and pay a registration
fee for the upcoming year equal to the amount of sales reflected
on the sales report. If sales reflected on the sales report are
less than the preceding year (the figure on which the fee was
based), then a credit, up to ten thousand dollars, will be
allowed. If sales reflected on the sales report are more than
the preceding year (the figure on which the fee was based), then
additional fees should be paid.
Because of the unique structure of the indefinite
registration provisions in Nebraska, the Form USR-1 is
inappropriate for reporting sales of mutual funds. Therefore,
the Institute and the State Liaison Committee have developed a
sales report on which mutual funds that register an indefinite
amount of securities in Nebraska can report sales.
Attachment A is a blank copy of the form that can be used
for reporting sales. Attachment B is three examples of how the
sales report would be filled in to reflect different sales.
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Each portfolio of a series fund must file a separate report
in Nebraska. However, a series fund in which all the portfolios
are registered in Nebraska under one registration number may
submit one check when filing the sales report. Attachment C is
an example of a sales report for a series fund where all
portfolios are registered under one registration number and one
check is filed.
The indefinite registration provision is somewhat
complicated, due to the fact that Nebraska does not have a fee
cap and Nebraska's fiscal constraints. Accordingly, the sales
report form is also somewhat complicated. A careful review of
the examples attached to this memorandum should help to minimize
any problems.
Natalie Shirley
Associate General Counsel
Attachments