May 15, 1990
TO: CONTRACTUAL PLANS COMMITTEE NO. 4-90
RE: NOTICE AND FEE TO CLAIM BLUE CHIP EXEMPTION FROM
REGISTRATION IN NEW MEXICO
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As an alternative to registering securities in New Mexico,
contractual plans may claim the blue chip exemption from
registration provided for in Section 58-13B-26 of the New Mexico
Securities Act. The statute provides an exemption from
registration for qualified mutual funds and unit trusts. A
mutual fund is qualified to claim the exemption if its investment
adviser has been registered with the SEC for three or more years.
A unit trust may claim the exemption if its sponsor has sponsored
SEC registered investment companies for at least three years and
has aggregate total assets of $100 million or more. In order to
claim the exemption, a mutual fund or unit trust must submit a
Notice of Intention to Sell and the appropriate filing fee.
The Institute was recently notified by the New Mexico
Securities Division that the Division has taken the position that
if a contractual plan organized as a unit trust is claiming the
blue chip exemption from registration, then the plan must
annually claim the exemption since the initial public offering
will extend beyond a twelve month period.
We will keep you informed of any additional developments.
Patricia Louie
Assistant General Counsel