Memo #
1252
MARYLAND ADOPTS INDEFINITE REGISTRATION PROVISION AND EXEMPTION FOR RESALE OF UNITS OF UNIT TRUSTS
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July 7, 1989
TO: STATE SECURITIES MEMBERS NO. 23-89
UNIT INVESTMENT TRUST MEMBERS NO. 34-89
RE: MARYLAND ADOPTS INDEFINITE REGISTRATION PROVISION AND
EXEMPTION FOR RESALE OF UNITS OF UNIT TRUSTS
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Effective July 1, 1989, Maryland has adopted a provision
that allows indefinite registration. A mutual fund or unit trust
may register an indefinite amount of securities by paying a fee
of $100 at the time of filing. Within six months after the
fund's or trust's fiscal year end, the fund or trust must pay a
fee of $650 or file a sales report and pay a fee of one-tenth of
one percent of the aggregate offering price of securities sold in
the state during the registration period, with a minimum fee of
$100 and a maximum fee of $400.
Previously, the term of registration was continuous until
the securities covered by the registration were sold or a post-
effective amendment to increase shares was filed with the SEC.
To renew, funds filed a copy of the SEC Rule 24f-2 Notice or Rule
24e Amendment. The Securities Commissioner of the Maryland
Division of Securities has indicated that funds no longer need to
file these documents. The Division intends to amend the
appropriate rule to conform to the statute as soon as possible.
The Commissioner also indicated that the uniform form USR-1 may
be used to report sales under the new renewal procedure.
In addition, as a result of the statutory changes effective
July 1, 1989, resales of units of unit trusts are exempt from
registration if the units are previously registered or exempt
from registration in Maryland and said units are offered or sold
by a registered broker-dealer that is the sponsor or an affiliate
of the sponsor of the trust.
Finally, the statute was amended to allow registrants to
notify the Commissioner of SEC effectiveness by telephone,
telegram or any other means deemed appropriate by the
Commissioner.
Natalie Shirley
Associate General Counsel