January 23, 1992
TO: UNIT INVESTMENT TRUST MEMBERS NO. 6-92
RE: COLORADO ADOPTS MANUAL EXEMPTION RULE
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As you know, in most states, unit trusts rely on an
exemption from registration under the state securities acts for
resales of units of unit trusts. The most commonly relied on
exemption is the manual exemption, which exempts a distribution
if the issuer is listed in a securities manual recognized by the
state securities administrator.
Effective January 1, 1992, the Colorado Securities Division
adopted Rule 3.9 which specifically identifies the manuals
recognized by the Division for purposes of the manual exemption.
A copy of the rule is attached.
Please note that in addition to the manual exemption, unit
trusts may also be able to rely on the exemption for securities
of qualified unit trusts ("blue chip" exemption) or the
transactional exemption for investment companies registered under
the Investment Company Act of 1940 as set forth in Section 11-51-
308(1)(b)(IV) of the Colorado Securities Act for resales of units
of unit trusts.
Patricia Louie
Assistant General Counsel
Attachment