April 14, 1989
TO: STATE SECURITIES MEMBERS NO. 13-89
RE: CORRECTION TO BLUE CHIP EXEMPTIONS IN SOUTH DAKOTA
__________________________________________________________
As you know, last year South Dakota adopted the blue chip
exemption for use by qualified mutual funds. (See Memorandum to
State Securities Members No. 6-88 dated March 11, l988.) Due to
a typographical error by the South Dakota Legislative Service
Bureau, the statutory provision provided that a mutual fund is
exempt from restriction if its investment adviser or an affiliate
has been registered under the Investment Advisers Act of l940 for
at least five years. Effective July 1, 1989, the Statute has
been amended to reflect that a mutual fund may claim the
exemption if its adviser has been registered under the Investment
Advisers Act of 1940 for at least three years.
This makes South Dakota's provision uniform with the blue
chip exemption adopted by Nevada, New Jersey, Oregon, Michigan,
Rhode Island and New Mexico.
Natalie S. Shirley
Associate General Counsel