August 20, 1991
TO: STATE SECURITIES MEMBERS NO. 34-91
UNIT INVESTMENT TRUST MEMBERS NO. 35-91
RE: DELAWARE LEGISLATION INCREASES FEES
__________________________________________________________
The Institute recently learned that legislation was signed
into law in Delaware which significantly increases the fee to
register by coordination, effective August 16, 1991. H.B. 361
amends Section 7306(e) of the Delaware Code relating to the
regulation of securities, broker-dealers, investment advisers and
agents.
Prior to the amendment of the statute, the fees for the
registration of investment company securities were a flat $200
for initial registration and $100 for renewal. As of August 16,
each fund series or portfolio must be individually registered and
a fee of one half of one percent of the aggregate amount
registered must be paid with a minimum fee of $200 and a maximum
fee of $1000. An indefinite amount of securities may be
registered for an annual flat fee of $1000 per registration.
Certain broker-dealer and investment adviser provisions
also were amended with respect to ethical conduct and financial
responsibility. The Commissioner has the authority to require
surety bonds.
The Delaware Division of Securities is in the process of
promulgating rules, three of which are attached. Form D-3, the
required form for the renewal of mutual fund securities
registration is currently being drafted. It is the intention of
the Institute to comment on this proposed form and to encourage
Delaware to follow NASAA's resolution with respect to renewal
procedures.
A copy of H.B. 361 and the draft rules are attached. We
will keep you informed of further developments.
Susan S. Burgess
Legal Assistant
Attachment