December 27, 1989
TO: STATE SECURITIES MEMBERS NO. 46-89
UNIT INVESTMENT TRUST MEMBERS NO. 73-89
RE: CLARIFICATION OF MARYLAND INDEFINITE REGISTRATION PROCEDURE
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As you know, effective July 1, 1989, Maryland 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.
In response to numerous inquiries regarding the procedure
for indefinite registration, the Maryland Division of Securities
recently issued an additional statement of policy clarifying the
fee payment for indefinite registration. The $100 fee paid
prospectively is intended to serve as an initial filing fee at
the time of application for registration of a new registrant.
The $100 fee may also be viewed as a renewal fee to be paid at
the time of filing the registration fee for the previous fiscal
year and/or the Form USR-1. Therefore, any time a registrant
makes a filing with the Division to register initially, or to
renew, the $100 must be paid in addition to any other fee that is
required at that time.
A registrant that paid a registration fee prior to July 1,
1989 may amend its registration statement for indefinite
registration by filing an amended U-1 application with the
appropriate registration fee, i.e., $500 minus the previous
registration fee paid prior to July 1, 1989. Registrants may not
obtain indefinite registration under the new statute by merely
sending in a $100 fee; such checks will be returned by the
Division.
The Division has also requested that registrants provide
fiscal year information to the Division inasmuch as the filings
for indefinite registration are keyed to a registrant's fiscal
year end.
A copy of Release No. 33, issued by the Maryland Division
of Securities on December 21, 1989 is attached.
Patricia Louie
Assistant General Counsel
Attachment