January 25, 1991
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 6-91
RE: NEW MEXICO AMENDS PROPOSED REGULATIONS
__________________________________________________________
As we previously informed you, last fall the New Mexico
Securities Division proposed for comment a comprehensive revision
of its administrative regulations. Included in the proposed
regulations was a provision that for purposes of the statutory
manual exemption, "no manual has been approved by the director".
The Institute submitted a comment letter that recommended that
the Director approve the use of Moody’s Bank & Finance Manual for
the purpose of the statutory manual exemption, or in the
alternative, that the Division specifically provide an exemption
for resales of units of unit trusts. (See Memoranda to Unit
Investment Trust Committee Nos. 43-90, dated September 19, 1990
and 49-90, dated November 8, 1990.)
We are pleased to inform you that the Division has included
a specific exemption for resales of units of unit trusts in the
amended proposed regulations. The exemption is very similar to
the administrative exemption adopted recently by the California
Corporations Department in that it provides an exemption for any
offer or sale of units in a unit investment trust by the sponsor
of that trust if all of the following conditions are met:
1. the offer and sale of the units was previously
registered or exempt under the New Mexico
Securities Act and there has been no material
change in the offering;
2. the units were repurchased by the broker dealer or
sponsor and are redeemable in accordance with the
provisions of the Investment Company Act of 1940;
3. the offer and sale is in accordance with the
provisions of the Securities Act of 1933 and the
Investment Company Act of 1940; and
4. the sponsor or the broker-dealer is a broker-dealer
licensed under the New Mexico Securities Act.
A copy of the relevant portion of the amended proposed
regulations is attached. Written comments on the amended
proposed regulations must be submitted by February 15, 1991 to
Michael Vargon, General Counsel, New Mexico Securities Divison,
725 St. Michaels Drive, Santa Fe, New Mexico 87501. Please
contact me by February 1, 1991 with any comments that you would
like included in the Institute’s comment letter .
* * *
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel
Attachment