November 29, 1990
TO: STATE SECURITIES MEMBERS NO. 33-90
UNIT INVESTMENT TRUST MEMBERS NO. 75-90
RE: ALABAMA ADOPTS FORM TO CLAIM BLUE CHIP EXEMPTION
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As we previously informed you, effective January 1, 1991, a
qualified mutual fund or unit investment trust will be able to
claim the blue chip exemption from registration. The blue chip
exemption is an alternative to the registration process. (See
Memorandum to State Securities Members No. 10-90 and Unit
Investment Trust Members No. 21-90, dated April 18, 1990.)
A qualified mutual fund or unit trust may claim the blue
chip exemption by filing a completed Form NM and the appropriate
fee. The fee to be submitted by a mutual fund is as follows:
$300 if a fund's total net assets are $25,000,000 or less; $600
if a fund's total net assets are more than $25,000,000 but less
than $100,000,000 and $1,000 if the fund's total net assets are
$100,000,000 or more. The fee for a unit trust is $200. A copy
for Form NM is attached.
Mutual funds or unit trusts that do not qualify for, or
elect not to claim, the blue chip exemption must register their
securities. A fund or trust may register a definite amount of
securities by submitting the documents required for registration
by coordination and a filing fee of $40 and a registration fee of
one-tenth of one percent of the amount registered (maximum
registration fee of $1,000). In the alternative, a fund or trust
may register an indefinite amount of securities by submitting the
documents required for registration by coordination, a filing fee
of $40 and a registration fee of $1,000 and a sales report within
sixty days of each year the registration is effective.
* * *
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel
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