August 10, 1994
TO: SEC RULES COMMITTEE NO. 87-94
STATE SECURITIES MEMBERS NO. 42-94
SUBCOMMITTEE ON ADVERTISING NO. 16-94
UNIT INVESTMENT TRUST COMMITTEE NO. 53-94
RE: VERMONT CLARIFIES FILING REQUIREMENT FOR PROSPECTUS
WRAPPERS
__________________________________________________________
Last month, the Vermont Securities Division issued Bulletin
94-1-S, which sets forth certain requirements for mutual funds
using prospectus wrappers in Vermont and reminds issuers that in
accordance with Section 4234(b) of the Vermont Securities Act,
sales literature must be submitted to the Securities Division for
approval. The Institute wrote to the Securities Division to, among
other things, point out several unanswered interpretive issues,
including whether sales literature must be stickered to meet the
July 15, 1994 effective date. (See Memorandum to State Securities
Members No. 39-94, SEC Rules Committee No. 78-94, Unit Investment
Trust Committee No. 48-94 and Subcommittee on Advertising No. 14-
94, dated July 14, 1994.)
The Director of the Securities Division recently notified the
Institute to clarify the filing requirement. According to the
Director, sales literature filed prior to July 15, 1994 does not
have to re-filed with the Division or include the disclosure set
forth in the Bulletin. If, however, the sales literature is
amended in any manner after July 15, 1994, it must be re-filed with
the Securities Division and comply with the provisions of the
Bulletin. Sales literature filed after July 15, 1994 must comply
with the Bulletin.
The Institute will continue to work with the Securities
Division to resolve the remaining issues associated with the
provisions of the Bulletin and will keep you advised of any
developments.
Patricia Louie
Associate Counsel