January 21, 1992
TO: STATE SECURITIES MEMBERS NO. 4-92
RE: ARIZONA UNDERTAKING FOR FUNDS WITH NON-FUNDAMENTAL OBJECTIVE
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As we previously advised you, the Arizona Securities
Division has issued comments to funds with non-fundamental
investment objectives and has required such funds to submit an
undertaking representing that shareholders of the fund will be
notified at least thirty days in advance of a change in the
investment objective of the fund. (See Memorandum to State
Securities Members No. 28-90, dated September 20, 1990.)
In addition to the undertaking regarding advance
notification to shareholders, the Institute was recently advised
that the Arizona Securities Division is also requiring that the
undertaking represent that investors will not be charged an
exchange fee or redemption fee if the investment objective of the
fund is changed.
We will keep you advised of further developments.
Patricia Louie
Assistant General Counsel