June 13, 1991
TO: STATE SECURITIES MEMBERS NO. 25-91
UNIT INVESTMENT TRUST MEMBERS NO. 22-91
RE: PROCEDURES FOR REGISTRATION OF SECURITIES IN IOWA
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As we previously informed you, legislation was adopted in
Iowa amending the Iowa Securities Act with respect to its
registration provisions for mutual funds and unit investment
trusts, effective July 1, 1991. (See Memorandum to State
Securities Members No. 20-91 and to Unit Investment Trust Members
No. 19-91, dated May 8, 1991.) The Iowa Securities Bureau is
currently drafting regulations to implement these statutory
changes.
Based upon discussions with the staff of the Bureau, it is
the Institute's understanding that the following procedure to
register securities will be included in the proposed regulations.
Please note that mutual funds and unit trusts may immediately
begin filing pursuant to this procedure.
Mutual funds must establish an annual renewal date based on
the anniversary of its effectiveness in Iowa. If this date
cannot be determined, a date one year from the most recent
amendment to the registration statement filed in Iowa may become
the renewal date. Please be aware that funds and trusts must
register an indefinite amount of securities -- registration of a
definite amount of securities will no longer be permitted. Also
separate registration of each portfolio or series is required.
Initially, funds and trusts must file Forms U-1, U-2 and U-
2A , a copy of the most recent prospectus, the latest Form N1-A
filed with the SEC and the appropriate fee. Form U-1, the most
recent prospectus and the fee must be filed annually; other
documents previously on file may be incorporated by reference if
no older than 5 years. Copies of amendments to the SEC
registration must also be filed in Iowa.
The annual registration fee is calculated in one of three
ways beginning on the anniversary date of a fund's or trust's
effectiveness in Iowa:
1. Pay $1,000 at the time of registration to register an
indefinite amount. No sales report will be required and
the term of registration will be one year from the fund's
anniversary date.
2. Pay $250 at the time of registration to register an
indefinite amount. Within 90 days of the next year's
anniversary date, file a sales report on Form USR-1 and
pay an additional fee based on 1/10 of 1% for Iowa sales in
excess of $250,000. The maximum additional fee for Iowa
sales in excess of $250,000 is $1,250.
3. Pay $250 at the time of registration to register an
indefinite amount. Pay an additional $1,250 within 90 days
of the next year's anniversary date. No sales report
required.
In addition to the proposed regulation regarding indefinite
registration, the Bureau will also propose a new regulation which
will exempt the filing of sales literature in Iowa provided that
such sales literature has been filed with the NASD.
A copy of the final regulations will be distributed upon
adoption.
Susan S. Burgess
Legal Assistant