July 16, 1990
TO: STATE SECURITIES MEMBERS NO. 25-90
UNIT INVESTMENT TRUST MEMBERS NO. 51-90
RE: RHODE ISLAND ENACTS LEGISLATION INCREASING FEES
__________________________________________________________
Effective July 12, 1990, Rhode Island enacted a new
securities act that, among other provisions, increases the fee to
claim the blue chip exemption from registration. Previously,
qualified mutual funds and unit trusts paid a fee of $200 to
claim the blue chip exemption. Pursuant to Section 7-11-401(14)
of the Act, the fee to claim the blue chip exemption for
qualified mutual funds and unit trusts is $300.
Mutual funds and unit trusts unable to claim the blue chip
exemption, must register by coordination pursuant to Section 7-
11-303 of the Act. The fee to register by coordination has been
increased to one-tenth of one percent of the amount registered,
with a minimum fee of $300 and a maximum fee of $1,000.
Section 7-11-305 of the Act also provides that mutual funds
and unit trusts may register an indefinite amount of securities
by paying an initial non-refundable fee of $300, and within sixty
days after the issuer's fiscal year an additional non-refundable
fee of $300, or file a sales report specifying the number of
shares sold and pay a fee of one-tenth of one percent of the
amount sold, with a minimum fee of $300 and maximum fee of
$1,000. Accordingly, if a fund or trust elects to file a sales
report, the possible maximum fee paid by the fund or trust would
be $1,300 (includes the initial $300 filing fee). If a fund
elects not to file a sales report, the maximum fee is $600
(includes the initial $300 filing fee).
A copy of S.1814 is attached.
Patricia Louie
Assistant General Counsel
Attachment