Memo #
2698
LEGISLATION PASSED IN MASSACHUSETTS SETTING REGISTRATION FEE FOR UNIT INVESTMENT TRUSTS
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April 18, 1991
TO: UNIT INVESTMENT TRUST MEMBERS NO. 14-91
RE: LEGISLATION PASSED IN MASSACHUSETTS SETTING REGISTRATION
FEE FOR UNIT INVESTMENT TRUSTS
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As we previously informed you, in January 1990 the
Massachusetts Securities Division re-interpreted the manner in
which registration fees are calculated to require that the fee be
based upon the aggregate amount of the offering nationwide rather
than the amount of the offering in Massachusetts. The effect of
the new interpretation was that the sponsor of a unit investment
trust would have to pay the maximum filing fee of $1,500 for each
series of a unit trust registered in Massachusetts. As a result
of the Institute's negotiations with the Massachusetts Securities
Division, an emergency rule was implemented, effective January 2,
1991 setting a one-time registration fee of $750 for each series
of a unit trust. (See Memoranda to Unit Investment Trust Members
No. 2-90, dated January 16, 1990 and No. 78-90, dated December
20, 1990.)
The Institute is pleased to inform you that legislation has
been signed by the Governor establishing a one-time registration
of $750 for unit investment trusts. This fee covers both the
initial registration and any subsequent resales of units of a
unit investment trust in Massachusetts. This is particularly
important since the Division amended the manual exemption in June
1990 to require that a manual listing contain a profit and loss
statement covering a full year of operations for the issuer;
thus, sponsors of trusts may not have been able to claim the
manual exemption for resales of units of unit trusts until such
financials had been prepared and published in the appropriate
manual. (See Memorandum to Unit Investment Trust Members No. 33-
90, dated June 12, 1990.)
A copy of Section 75 of House No. 5300 setting forth the
one-time registration fee for unit investment trusts is attached
and is effective as of March 22, 1991.
Patricia Louie
Assistant General Counsel
Attachment