Compliance Alert - UIT Disclosure
In part of our reviews of potential issues on a regulator's radar, Unit Investment Trusts (UITs) are one of the next hot topics. The regulators focus is on whether clients have been advised of the costs of the investment, risks and the fact that these are products intended to be held to maturity. For current holders of UITs and any new purchases of UITs in which a client does not already have a UIT disclosure on file, we will require the disclosure. A copy of the disclosure is attached. This will be required for brokerage accounts only at this time.
If you want to get ahead of this with your UIT clients and have them sign the disclosure, please feel free to send it out and then upload to Docupace set for Compliance Review. If we do not receive them back from the applicable clients that hold UITs, we will do a mailing out to them before the end of the month (about 100 accounts that hold UITs firm wide) requesting the disclosure. Your signature will not be required if the mailing is sent from Decatur.
If you have any questions, please let me know. We look forward to seeing everyone in Louisville next week! Thanks, Renee