SEC denies request for "no action" on Missouri bank 529
The Securities and Exchange Commission (SEC) has refused to issue a no-action letter with respect to the proposal by Missouri to add CDs and other banking products to its 529 savings plan. The request for the no-action letter was submitted in November 2007 by the Missouri Banker's Association.
In denying the request, the SEC noted that, under the proposal described, a participant in Missouri's 529 plan would not be purchasing interests issued by a public instrumentality of the state such as a trust or fund authorized by enabling legislation, but would be investing directly in bank depository instruments.
In addition, the SEC denied the requested no-action relief regarding the banks' need to register with the SEC as securities dealers.
For more information, click hereReturn to 529 News centerIn denying the request, the SEC noted that, under the proposal described, a participant in Missouri's 529 plan would not be purchasing interests issued by a public instrumentality of the state such as a trust or fund authorized by enabling legislation, but would be investing directly in bank depository instruments.
In addition, the SEC denied the requested no-action relief regarding the banks' need to register with the SEC as securities dealers.