March 16, 1992
TO: BOARD OF GOVERNORS NO. 17-92
CLOSED-END FUND MEMBERS NO. 11-92
STATE SECURITIES MEMBERS NO. 11-92
UNIT INVESTMENT TRUST MEMBERS NO. 16-92
FLORIDA ASSOCIATE MEMBERS
RE: INVESTMENT COMPANIES EXCLUDED FROM FLORIDA DISCLOSURE BILL
__________________________________________________________
The Institute is pleased to inform you that investment
companies registered under the Investment Company Act of 1940
have been excluded from a bill recently passed by the Florida
Legislature which requires issuers to disclose in their
prospectuses if they do business with the government of Cuba.
Legislation had been introduced in the Florida Senate and
House which would have required all issuers of securities to
disclose in their prospectuses whether they conduct business with
the government of Cuba. In addition to the disclosure
requirement, the legislation also provided for a private right of
action for rescission, damages or a fine for failure to include
this disclosure in the prospectus.
The Institute retained local counsel in Florida to seek
amendments to the legislation to reduce the burden of such
disclosure on investment companies and remove the private right
of action for rescission. The amended legislation excludes
investment companies and removes the private right of action for
rescission. A copy of the Institute's letter and the amended
legislation is attached.
The amended legislation has passed both houses of the
Florida Legislature and is awaiting the governor's signature.
The legislation is effective immediately upon his signature.
Patricia Louie
Assistant General Counsel
Attachments