September 26, 1991
TO: BOARD OF GOVERNORS NO. 76-91
STATE SECURITIES MEMBERS NO. 43-91
UNIT INVESTMENT TRUST MEMBERS NO. 44-91
RE: KANSAS ADOPTS BLUECHIP EXEMPTION
__________________________________________________________
The Institute is pleased to inform you that as a result of
the Institute's efforts, Kansas will become the eleventh state to
adopt the blue chip exemption from registration. As of November
11, 1991, rule K.A.R. 81-5-9 will become effective. This rule
provides the blue chip exemption from registration for qualified
mutual funds and unit investment trusts and is similar to the
exemption contained in the Revised Uniform Securities Act of
1986. Claiming the blue chip exemption is an alternative to the
registration process.
A mutual fund is exempt from registration if its investment
adviser or an affiliate of its investment adviser has been
registered under the Investment Advisers Act of 1940 for at least
three years. If qualified, a mutual fund may claim the exemption
by submitting annually to the Kansas Securities Commission, a
notice of intention to sell on Form K-14 and the appropriate fee.
Mutual funds with net assets of $100 million or less must pay a
fee of $500, funds with net assets of more than $100 million but
less than $400 million must pay a filing fee of $1,000 and funds
with net assets of $400 million or more must pay a filing fee of
$1,500.
A unit trust is exempt from registration if its principal
underwriter has been the principal underwriter for registered
investment companies with aggregate total assets in excess of
$100 million for at least three years. If qualified, a unit
trust may claim the exemption by submitting (on a one-time basis)
a notice of intention to sell on Form K-14 to the Kansas
Securities Commission and an exemption fee of $200.
In addition, rule K.A.R. 81-4-3 has been adopted and will
become effective on November 11, 1991. This rule provides that
separate securities registrations and registration fees, or
separate notices and exemption fees are required for each series
or portfolio of an open-end investment company.
* * *
Attached is a copy of K.A.R. 81-4-3, K.A.R. 81-5-9 and Form
K-14.
Patricia Louie
Assistant General Counsel
Attachments