September 13, 1991
TO: CONTRACTUAL PLANS COMMITTEE NO. 14-91
RE: MONTANA ISSUES CONTRACTUAL PLAN POLICY STATEMENT
__________________________________________________________
The Montana Securities Department has issued the attached
Policy Statement, effective August 12, 1991, regarding the
registration of contractual plans in Montana. According to the
Policy Statement, a contractual plan may be registered if the
following provisions are met:
1. the plan must be offered and sold in compliance
with Section 27 of the Investment Company Act of
1940;
2. the proceeds of the investment in the plan must be
placed in a dedicated fund;
3. the investment objective of the underlying mutual
fund must be capital growth;
4. the broker-dealer or salesman must have determined
that the plan is a suitable investment for the
potential investor; and
5. a disclosure document, approved by the Montana
Securities Commissioner, must be signed by the
purchaser prior to or at the time of sale.
The registration of a contractual plan may be revoked,
suspended or denied for failure to comply with the foregoing
provisions.
* * *
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel
Attachment