January 23, 1992
TO: STATE LIAISON COMMITTEE NO. 3-92
UNIT INVESTMENT TRUST COMMITTEE NO. 6-92
RE: IOWA ISSUES PROPOSED REGISTRATION RULES
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The Iowa Securities Bureau recently issued certain proposed
rules relating to the filing of sales material and registration
requirements for mutual funds and unit investment trusts. A copy
of the proposed rules is attached.
The Institute is pleased to inform you that based upon the
Institute's recommendation, Rule 50.25(502) is proposed to be
amended to provide an exemption for advertising and sales
literature prepared in conformity with the regulations of the
Securities and Exchange Commission and the National Association
of Securities Dealers, Inc. from the filing requirements of
Section 502.602 of the Iowa Code. Currently, the statute and
rule requires all advertising and sales literature to be filed
within ten days of first use.
Proposed Rule 50.50(502) sets forth the requirements for
registration and renewal of mutual funds and unit investment
trusts. Registration statements shall be effective for one year
from the anniversary date of registration and must be renewed on
an annual basis to remain effective in Iowa. In addition, a
separate registration must be filed for each portfolio or class
of securities. The rule further sets forth the filing fees for
registration of various aggregate amounts of securities and
provides for the filing of sales reports in certain instances.
At this time, an effective date for the proposed rules has
not yet been determined. However, it is our understanding that
the advertising and sales literature filing requirement is not
currently being enforced by the staff of the Securities Bureau if
such material complies with the requirements of the SEC and NASD.
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel
Attachment