January 10, 1991
TO: BOARD OF GOVERNORS NO. 6-91
RE: Institute By-Law Amendment Regarding
UIT Dues Formula
__________________________________________________________
Attached is a resolution describing amendments to Sections
4(a) and 4(b) of Article V of the Institute’s corporate by-laws.
These sections deal with the membership dues of Unit Investment
Trusts (UIT) sponsor-members.
Last summer the UIT Standing Committee appointed a task
force to evaluate the dues formula for UIT sponsor-members. The
task force was charged with reviewing the formula and to make
recommendations for changing the formula if it felt the formula
contained inequities. After a very thorough analysis, the task
force recommended the following changes to the dues formula:
1. Minimum dues be changed from a percentage of the total
dues assessed (2%) to a dollar amount of $15,000
2. Maximum dues be increased from 10% to 16% of
the total UIT dues assessment
The current formula has resulted in inequities at the lower
and higher ends of the scale, with the sponsor-members in between
frequently experiencing significant changes in their dues from
year-to-year even though the change in deposits (on which the
dues are based) does not merit dramatic swings in the dues of
these mid level sponsor members. By increasing both the minimum
and maximum amounts of dues, we will help ameliorate this
problem.
The recommended change in the dues formula has been
presented to the thirteen (13) UIT sponsor-members for a vote to
approve or disapprove the new formula. An overwhelming majority
of the sponsor-members have approved the proposed dues formula.
Based on this approval vote, the staff requests Board of
Governors approval of the attached resolution at its meeting on
January 30, 1991.
Attached is a schedule showing the amount of dues for each
sponsor member for the current fiscal year under both the present
formula and the proposed formula.
Tom Simmons
Vice President-Administration
Attachments: Dues Schedule
Board Resolution