March 2, 1994
TO: SEC RULES COMMITTEE NO. 26-94
STATE SECURITIES MEMBERS NO. 8-94
UNIT INVESTMENT TRUST COMMITTEE NO. 17-94
RE: MISSOURI RESCINDS PROPOSED RULE AND AMENDS EXISTING
REGISTRATION RULE
__________________________________________________________
The Institute is pleased to inform you that the Missouri Securities
Commissioner has formally rescinded and withdrawn a proposed rule that would have
required, among other items, an investment company to deliver a Missouri
supplement to prospective Missouri investors. (See Memorandum to State
Securities Members No. 40-93, SEC Rules Committee No. 87-93 and Unit Investment
Trust Committee No. 49-93, dated October 6, 1993.) In response to the proposal,
the Institute submitted a comment letter and met with the Securities Commissioner
to express its strong opposition to the proposed rule. Based upon the widespread
opposition from the investment company industry, the Securities Commissioner
determined that adoption of the proposed rule would not be practical.
Instead of adopting the proposed rule, the Securities Commissioner has
amended the existing registration provision for mutual funds, Rule 30-52.160, to
make it clearer and to facilitate disclosure to investors. Rule 30-52.160 has
been amended to require:
1. that a fund with a non-fundamental investment objective provide
shareholders with thirty days advance written notice before any
material change is made to the investment objective;
2. that the Statement of Additional Information be made available by
telephone and that the telephone number be disclosed on the cover
page of the fund's prospectus;
3. that investment policies affecting five percent or more of a fund's
total assets be disclosed in the prospectus;
4. that prominent disclosure be included in the fund's prospectus or a
prospectus supplement, if the fund engages in certain policies
(e.g., borrowing, high annual portfolio turnover, short-term
trading, short selling, investing in low-rated debt securities);
5. that, if applicable, the fund complies with the NASAA guidelines on
master/feeder funds, periodic payment plans and telephone
transactions; and
6. that certain post-effective amendments (i.e., filings made pursuant
to Rule 485(a) of the Securities Act of 1933, annual reports and
proxy statements concerning material changes to the investment
objectives and management policies) be filed with the Securities
Commissioner. Filings made pursuant to Rule 485(b) of the
Securities Act of 1933, quarterly and semi-annual reports are not
required to be filed with the Securities Commissioner.
A copy of the amended rule is attached.
Patricia Louie
Associate Counsel
Attachment