May 15, 1990
TO: UNIT INVESTMENT TRUST MEMBERS NO. 27-90
RE: PROPOSED VIRGINIA RULE FOR REFUND OF EXCESS REGISTRATION
FEES PAID BY UITS
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As we previously informed you, legislation increasing the
registration fees for unit investment trusts was passed by both
houses of the Virginia General Assembly and will go into effect
July 1, 1990 (Memorandum to Unit Investment Trust Members No. 24-
90, dated April 27, 1990). Pursuant to Section 509 of the
Virginia Securities Act, the fee for registration of a unit
investment trust will be one-twentieth of one percent of the
maximum aggregate offering price of the securities proposed to be
offered in Virginia, with a minimum fee of $400 and a maximum fee
of $1,000.
In connection with the increased registration fee, the
Virginia Corporations Commission has proposed an administrative
rule, Rule 401.1, that provides for the refund of a portion of
the registration fees paid by unit investment trusts. Proposed
Rule 401.1 provides that a unit investment trust may obtain a
refund of that portion of the fee paid in excess of $400 if (1) a
Request for Refund Affidavit is submitted within sixty days of
the Virginia effective date of the registration statement, (2) a
shareholders list including the names and addresses of all
persons who purchased units of the trust, the date of the
purchase, number of units purchased, and gross purchase price is
submitted, and (3) the amount of the refund is $25 or more. A
copy of proposed Rule 401.1 is attached.
The Institute strongly encourages you to submit a comment
letter with respect to proposed Rule 401.1 In particular,
opposition should be expressed with respect to the requirement
that a refund request be submitted within sixty days of the
Virginia effective date and the requirement that a shareholders
list be submitted.
The deadline for filing comments and requests to be heard
and present evidence in opposition to the proposed rule is
Wednesday, May 23, 1990. They should be sent to the State
Corporation Commission, Document Control Center, P.O. Box 2118,
Richmond, Virginia 23216, and should make reference to Case No.
SEC900034. The proposed effective date of the proposed rule is
July 1, 1990.
We will keep you informed of developments.
Patricia Louie
Assistant General Counsel
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