March 11, 1994
TO: SEC RULES COMMITTEE NO. 30-94
STATE LIAISON COMMITTEE NO. 21-94
RE: WISCONSIN REQUESTING RESCISSION IF PROSPECTUSES ARE NOT
APPROPRIATELY STICKERED
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The Institute has been advised by several of its members that they have
been contacted by the Wisconsin Office of the Commissioner of Securities for
failure to include a sticker to the prospectus. As you know, in certain
situations (e.g., if a fund engages in "speculative" activities, notifying
investors in advance of a change in a fund's non-fundamental investment
objective) the Office of the Commissioner requires the fund's prospectus to
include a sticker disclosing this information to Wisconsin investors.
Apparently, the staff of the Office of the Commissioner has anonymously requested
and received copies of fund prospectuses that should have, but did not, include
the required sticker. Attached is a sample copy of a letter from the Office of
the Commissioner regarding this issue.
It is our understanding that, in these instances, the staff has suggested
that rescission may be required. In order for us to evaluate the severity of
this situation, please contact me at 202/326-5821 if you have been notified by
the Office of the Commissioner with respect to this issue and how it has been
resolved.
Patricia Louie
Associate Counsel
Attachment