May 15, 1992
TO: STATE SECURITIES MEMBERS NO. 23-92
UNIT INVESTMENT TRUST COMMITTEE NO. 28-92
RE: IOWA ADOPTS FINAL REGISTRATION RULES
__________________________________________________________
The Iowa Securities Bureau recently adopted final rules for
the registration of mutual funds and unit investment trusts,
effective March 18, 1992. These rules implement the 1991
statutory amendments to the Iowa Securities Act. (See Memorandum
to State Securities Members No. 25-91 and Unit Investment Trust
Members No. 22-91, dated June 13, 1991.) A copy of the final
rules is attached.
Rule 50.50(502) sets forth the requirements for
registration and renewal of mutual funds and unit trusts.
Registration statements shall be effective for one year from the
date the administrator declares the registration effective and
must be renewed annually. Moreover, separate registration is
required for each portfolio or series of a fund or trust.
An application to register securities must include the
appropriate filing fee, Form U-1, Form U-2, Form U-2A and a copy
of the most recent prospectus and statement of additional
information. A fund or trust must register an indefinite amount
of securities and pay one of the following fees:
a. $1,000 at the time of registration (or renewal)
to register an indefinite amount of securities. No sales
report will be required at the expiration of the
registration period.
b. $250 at the time of registration (or renewal) to
register an indefinite amount of securities. Within 90
days of the expiration of the registration statement, the
fund or trust must file a sales report on Form USR-1 and
pay an additional fee of 1/10th of 1% of actual sales in
Iowa in excess of $250,000. The maximum additional fee is
$1,250.
c. $250 at the time of registration (or renewal)
to register an indefinite amount of securities. Within 90
days of the expiration of the registration statement, pay
the maximum additional of $1,250. No sales report is
required.
Also, we had previously advised you that the Securities
Bureau would be adopting a rule to exempt the filing of sales
literature in Iowa provided that such sales literature had been
filed and approved by the National Association of Securities
Dealers. The proposed rules contained such a provision; however,
after the comment period, the proposed amendment to Rule
50.25(502) was withdrawn.
The Institute has been advised that the Securities Bureau
will be proposing a new regulation to provide an exemption for
advertising and sales literature prepared in conformity with the
regulations of the SEC and NASD in the near future. In the
interim, the staff of the Securities Bureau has taken the
position that investment company sales literature filed and
approved by the NASD need not be filed with the Bureau.
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel
Attachment