October 24, 1990
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 47-90
RE: CALIFORNIA AMENDS PROPOSED REGULATION EXEMPTING RESALES
OF UNIT TRUSTS
__________________________________________________________
As we previously informed you, the California Corporations
Comission proposed a rule to exempt resales of units in a unit
trust by the sponsor of the trust under certain circumstances.
(See Memorandum to Unit Investment Trust Committee No. 32-90,
dated July 25, 1990.)
After receiving comments from the Institute and its
members, the Corporations Commission issued an amended proposed
regulation for resales of units in a unit trust. The amended
proposed regulation exempts resales of a unit trust by the
sponsor of the trust or through a broker-dealer, provided that
(1) the offer and sale of the units was previously qualified in
California, (2) there has been no material change in the
offering, (3) the units are repurchased by the broker-dealer or
sponsor and are redeemable in accordance with the provisions of
the Investment Company Act of 1940, (4) the offer and sale is in
accordance with the Securities Act of 1933 and the Investment
Company Act of 1940 and (5) the sponsor or broker-dealer is a
broker-dealer licensed in California. A copy of the amended
proposed rule is attached.
Comments on the amended proposed rule are due no later than
Monday, November 5, 1990 and should be addressed to Robert M.
Arhelger, Senior Corporations Counsel, Office of Policy,
Department of Corporations, 1107 Ninth Street, 8th Floor,
Sacramento, California 95814-3610.
We will keep you informed of developments.
Patricia Louie
Assistant General Counsel
Attachment