INSTITUTE SUBMITS MEMORANDUM TO INTERIM NEBRASKA LEGISLATIVE COMMITTEE ON POSSIBLE FEE RELIEF MEASURES

September 13, 1990 TO: STATE LIAISON COMMITTEE NO. 21-90 RE: INSTITUTE SUBMITS MEMORANDUM TO INTERIM NEBRASKA LEGISLATIVE COMMITTEE ON POSSIBLE FEE RELIEF MEASURES __________________________________________________________ As we previously informed you, an Interim Committee of the Nebraska Legislature has been formed to conduct a study of securities fees. (See Memorandum to State Liaison Committee No. 13-90, dated June 15, 1990.) The Institute submitted a memorandum to the Interim Committee recommending that consideration be given to the following proposals to reduce the fee burden in Nebraska for mutual funds: 1. assess registration fees based on "net" rather than gross sales; 2. adopt a "true" indefinite registration procedure whereby funds pay a nominal fee at the time of initial registration or renewal and a subsequent fee based on actual sales at the end of its fiscal year; 3. adopt a graduated fee schedule; 4. reduce the basic fee structure; or 5. adopt a "blue chip" exemption from registration. A copy of the Institute's memorandum is attached. The Institute will be meeting with members of the Interim Committee and the Nebraska Securities Bureau on September 24, 1990 to discuss the proposals outlined in the memorandum. We will keep you advised of developments. Patricia Louie Assistant General Counsel Attachment