November 21, 1991
TO: STATE SECURITIES MEMBERS NO. 51-91
UNIT INVESTMENT TRUST MEMBERS NO. 57-91
RE: PROCEDURES FOR THE REGISTRATION OF SERIES FUNDS IN
KENTUCKY AND SOUTH DAKOTA
__________________________________________________________
The Institute recently received the attached memoranda from
Kentucky and South Dakota with regard to certain filings in their
respective states.
The Kentucky Division of Securities has issued a memorandum
to remind all registered open-end investment companies of the
requirement to file copies of each current prospectus and SAI as
soon as they become available. In fact, the Division will not
renew a fund's registration unless a prospectus and SAI have been
filed during the fund's current registration year, even if the
renewal application and fees have been submitted.
Additionally, the Kentucky Division of Securities has
clarified the procedure for the registration of fund series and
portfolios. There must be a separate registration for each
prospectus. All portfolios or series sold from a single
prospectus are filed as a single registration. However, if a
portfolio or series is taken out of a prospectus to be sold from
a new prospectus, a new application for registration must be
filed before there can be further sales of the portfolio or
series.
South Dakota is changing its policy of allowing investment
companies to file a single registration or claim a single blue
chip exemption for all series, portfolios or trusts included in a
single prospectus. Beginning December 1, 1991, all investment
companies that apply for registration or claim the blue chip
exemption must make individual filings for each series, portfolio
or trust. A new series, portfolio, class or trust cannot be
added to a current registration permit or blue chip exemption
notice; a separate filing must be made for each and a separate
fee must be paid. As you know, since the fee to claim the blue
chip exemption is based on a fund's net assets, if the net assets
for each series, portfolio or trust cannot be segregated for
purposes of determining the appropriate fee, the fee will be
based on the entire fund.
A copy of each memorandum is attached.
Susan S. Burgess
Legal Assistant
Attachments