May 8, 1991
TO: STATE SECURITIES MEMBERS NO. 20-91
UNIT INVESTMENT TRUST MEMBERS NO. 19-91
RE: IOWA ADOPTS INDEFINITE REGISTRATION PROVISION
__________________________________________________________
Legislation amending the Iowa Securities Act has been
signed by the Governor and becomes effective July 1, 1991.
Senate File 520 amends the general registration provisions of the
Act to provide that mutual funds and unit investment trusts may
register an indefinite amount of securities. Currently, funds
and trusts must register a definite amount of securities and pay
a registration fee of one-tenth of one percent of the aggregate
amount registered ($50 minimum, $1,000 maximum).
The amendment to Section 502.208(2) of the Act permits a
mutual fund or unit trust to register an indefinite amount of
securities and at the time of filing either (1) pay the maximum
registration fee of $1,000, or (2) pay a fee of $250.00 and
within ninety days after the end of its fiscal year end, elect to
do one of the following:
a. pay an additional fee of $1,250 (no sales report
required); or
b. file a sales report and pay an additional fee of
one-tenth of one percent of the aggregate amount of
securities sold in Iowa, with a maximum fee of
$1,250.
Please note that if a fund or trust elects to pay the
$250.00 filing fee, the maximum fee that could be paid by a fund
or trust is $1,500. If the fund or trust elects to pay $1,000 at
the time of filing, no additional fees or sales reports need be
made until the registration is renewed.
The legislation also amends Section 502.208(9) of the Act
to provide a one year registration period. Currently, the
statute provides that a registration statement remains effective
until withdrawn, suspended or revoked.
* * * *
A copy of Senate File 520 is attached. We will keep you
advised of developments.
Patricia Louie
Assistant General Counsel
Attachment