April 6, 1992
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 20-92
RE: INSTITUTE SUBMITS ADDITIONAL COMMENTS ON PROPOSED MANUAL
EXEMPTION RULE IN UTAH
__________________________________________________________
As we previously advised you, due to last year's
legislative amendment to the manual exemption provision in the
Utah Uniform Securities Act, the Utah Securities Division amended
the manual exemption rule. The rule currently requires that the
financial statements in the listing contain an unqualified audit
report by an independent certified accountant. The Division had
been considering a proposed amendment to the rule which would
require the filing of a notice and payment of a fee in order to
claim the manual exemption. In response to this proposal, the
Institute submitted a comment letter to the Securities Division
which set forth the impact that imposition of a filing and fee
would have on the resale market for units of unit trusts in Utah.
(See Memorandum to Unit Investment Trust Committee No. 10-92,
dated February 19, 1992.)
The Securities Division recently published the proposed
amendment to Rule R164-14-2b which outlines the conditions for
claiming the manual exemption. The proposed amendment provides
that in order to claim the manual exemption, a unit investment
trust must have previously registered its shares with the
Division or claimed the blue chip exemption. In addition, the
proposed amendment requires that a request for confirmation
containing certain information be made. However, the financial
statements contained in the filing may be unaudited.
The Institute contacted the Director of the Securities
Division to object to the filing requirement and was assured that
the rule would be modified to provide a specific exemption for
resales of units of unit investment trusts. A copy of the
Institute's letter is attached.
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel
Attachment