October 19, 1990
TO: UNIT INVESTMENT TRUST MEMBERS NO. 68-90
RE: NORTH DAKOTA EXEMPTS MUTUAL FUND SALES LITERATURE
FROM FILING REQUIREMENT
__________________________________________________________
As you know, the Institute has been working for several
years to eliminate the sales literature filing requirement in all
states. In 1984, the North American Securities Administrators
Association ("NASAA") adopted a resolution encouraging its
members to repeal their respective laws, rules and policies which
require the filing of sales literature of mutual funds and unit
investment trusts. At the time the resolution was passed,
approximately thirteen states required sales literature to be
filed. Currently, ten states still require sales literature to
be filed.
The Institute has contacted each of the states that require
sales literature be filed to request that such requirement be
eliminated, particularly since the SEC has eliminated its filing
requirement for sales literature that has been filed with the
NASD and the NASD requires that sales literature used by both
underwriters and dealers be filed. A copy of the Institute's
letter to the North Dakota Securities Commissioner is attached.
We are pleased to inform you that as a result of the
Institute's efforts, the North Dakota Securities Act ("the Act")
has been amended to exempt mutual fund advertising material from
the filing requirements of the Act, effective September 1, 1990.
A copy of Section 73-02-04-01 of the Act is attached.
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel
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