September 26, 1989
TO: STATE SECURITIES MEMBERS NO. 32-89
UNIT INVESTMENT TRUST MEMBERS NO. 48-89
RE: LEGEND REQUIREMENT IN NEW HAMPSHIRE
__________________________________________________________
New Hampshire recently enacted legislation (House Bill
123), effective January 1, 1990, that requires the following
legend to be included on the cover page of every prospectus of
public offerings, including mutual funds and unit trusts, offered
in New Hampshire:
Neither the fact that a registration statement or an
application for a license has been filed nor the fact that
a security is effectively registered or a person is
licensed constitutes a finding by the director that any
document filed under this chapter is true, complete and not
misleading. Neither any such fact nor the fact that an
exemption or exception is available for a security or a
transaction means that the director has passed in any way
upon the merits or qualifications of, or recommended or
given approval to, any person, security, or transaction.
It is unlawful to make, or cause to be made, to any
prospective purchaser, customer, or client any
representation inconsistent with the provisions of this
section.
The Institute contacted the New Hampshire Office of
Securities Regulation regarding this additional legend
requirement. The staff of the Office of Securities Regulation
has advised that they will not require mutual funds and unit
trusts to place the legend set forth in House Bill 123 on their
prospectuses provided that the uniform legend has been placed on
a mutual fund or unit trust's prospectus. A copy of the
Institute's letter is attached as Attachment A.
We will keep you informed of further developments.
Patricia Louie
Assistant General Counsel
Attachment