March 23, 1994
TO: INVESTMENT ADVISERS COMMITTEE NO. 24-94
SEC RULES COMMITTEE NO. 37-94
STATE LIAISON COMMITTEE NO. 26-94
UNIT INVESTMENT TRUST COMMITTEE NO. 24-94
ILLINOIS MEMBERS
RE: ILLINOIS LEGISLATION
__________________________________________________________
As we previously advised you, the Honorable George Ryan, Illinois Secretary
of State, has announced plans to have legislation introduced in the Illinois
General Assembly that will amend the Illinois Securities Act. (See Memorandum
to SEC Rules Committee No. 20-94, State Liaison Committee No. 17-94, Unit
Investment Trust Committee No. 15-94, Investment Advisers Committee No. 15-94,
dated February 24, 1994.) Of particular concern to the Institute is Section 7b
of the legislation, which would require delivery of a Statement of Additional
Information and a supplemental disclosure document with each prospectus prior to
or at the time of sale.
By letter dated March 7, 1994, the Institute wrote to Secretary Ryan to
express our concerns with various provisions of the proposed legislation.
Subsequent to sending this correspondence, representatives of the Institute met
with representatives of Secretary Ryan's staff to discuss these concerns. After
the meeting the Institute sent a letter to the Secretary's staff discussing in
more detail some of the issues raised. A copy of the Institute's correspondence
is attached.
As of the date of this Memorandum, the legislation has not been introduced
in the General Assembly. The Institute will continue to closely monitor this
situation and keep you apprised of developments.
Tamara K. Cain
Assistant Counsel
Attachments