June 29, 1990
TO: STATE SECURITIES MEMBERS NO. 20-90
UNIT INVESTMENT TRUST MEMBERS NO. 42-90
RE: COLORADO ISSUES ADOPTS FORMS AND SETS FEES
__________________________________________________________
As we previously informed you, legislation was enacted in
Colorado that completely revises the Colorado Securities Act.
Such revisions are effective as of July 1, 1990 and include a
"blue chip exemption" from registration for qualified mutual
funds and unit trusts. (See Memorandum to State Securities
Members No. 18-90, Unit Investment Trust Members No. 37-90, dated
June 13, 1990.) Mutual funds and unit trusts that are unable to
claim the blue chip exemption must comply with the procedure for
registration by filing.
You should be aware that the staff of the Division has
stated that although the new provisions of the Act are effective
as of July 1, 1990, mutual funds and unit trusts currently being
offered and sold in Colorado will have until August 15, 1990 to
submit the appropriate documentation to claim the blue chip
exemption or register by filing. Filings received by August 15,
1990 will be retroactively granted an effective date of July 1,
1990; thereafter, the anniversary date will be July 1.
Applications or notices of new mutual funds or unit trusts,
i.e., funds or trusts that have not gone effective with the
Securities and Exchange Commission and are not currently being
offered and sold in Colorado, will be effective on the date that
the SEC declares the registration statement effective, or the
date the application for registration or notice of claim of
exemption is received by the Division.
Procedure to Claim Blue Chip Exemption
A mutual fund is exempt from registration if its investment
adviser or an affiliate of its investment adviser has been
registered under the Investment Advisers Act of 1940 for at least
three years. If qualified, a mutual fund may claim the exemption
by submitting annually to the Colorado Securities Division a
completed copy of Colorado Form IC and a check made payable to
the "Colorado State Treasurer" in the amount of $60.00.
A unit trust is exempt from registration if its principal
underwriter has been the principal underwriter for registered
investment companies with aggregate total assets in excess of
$100 million for at least three years. If qualified, a unit
trust may claim the exemption by submitting to the Colorado
Securities Division a completed copy of Colorado Form IC and a
check made payable to the "Colorado State Treasurer" in the
amount of $60.00. Section 11-51-308(IV) of the Act exempts a
nonissuer distribution of an outstanding security if the issuer
is registered under the Investment Company Act of 1940.
Registration by Filing
Mutual funds and unit trusts unable to claim the blue chip
exemption, must register by filing pursuant to Section 11-51-303
of the Act. Mutual funds or unit trusts that register their
securities must submit a completed application on Colorado Form
RF or the uniform form for registration of securities (Form U-1),
uniform consent to service of process (Form U-2), and uniform
corporate resolution (Form U-2A), and a check made payable to the
"Colorado State Treasurer" in the amount of $75.00.
* * *
A complete copy of the revised Colorado Securities Act is
attached, as well as the schedule of fees and Colorado Forms IC
and RF.
Patricia Louie
Assistant General Counsel
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