On July 18, 1985 certain amendments to the Commission Rules and Regulations went into effect. Of particular significance to the Regulation Section are the amendments to A.C.R.R. R14-4-101, R14-4-102 and R14-4-103. * * *

  R14-4-101, promulgated pursuant to A.R.S. Section 44-1845, provides an exemption from the securities and dealer registration requirements where offers and sales are made to existing employees or security holders and no commission or remuneration is paid to any person in connection with the distribution or sale of such securities. The rule previously limited the dollar amount of the securities to be offered to $50,000; the amendment increased this amount to $500,000. The exemption is effective for one year.

  R14-4-102, also promulgated pursuant to A.R.S. Section 44-1845, provides an exemption from the securities and dealer registration requirements where offers and sales are made to ten or fewer persons in Arizona. As amended, the dollar amount of securities which    may  be   offered    or    sold   pursuant    to   such exemption is increased from $50,000 to $100,000. The amendment also adds a purchaser suitability requirement whereby the investment will be presumed suitable for the purchaser if it does not exceed 20 percent of the purchaser’s net worth (excluding principal residence, furnishings and personal automobiles). The exemption is effective for one year.

  R14-4-103, as amended, no longer requires the filing of advertising and sales materials used in connection with the sale of investment company shares registered pursuant to the Investment Company Act of 1940 if such materials meet the requirements of the Securities and Exchange Commission Rule 156 (17 CFR 230.156).

Securities Bulletin, Winter 1986.