no-action letter


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No-action letter

A letter from the Securities and Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity.

No-Action Letter

A letter from the SEC stating that it will seek no civil or criminal penalties for a given activity. The SEC sends no-action letters in response to inquiries from organizations regulated by it. For example, if a company wishes to take a certain action but is uncertain as to its legality, it requests clarification from the SEC. Receiving a no-action letter equates to permission to take the action in question.

no-action letter

A response from the SEC staff to an individual inquiry, stating that the staff will recommend to the Commission that no action be taken on a specific transaction if the transaction is carried out in the fashion indicated.
References in periodicals archive ?
This is in response to the SEC's recent No-Action letter which clarifies the utilization of the internet for online Private Placements under rule 506(b).
Lawyers told Compliance Complete the card mail-outs were likely to breach laws governing unsolicited offers of financial products, but ASIC's no-action letter meant the matter was unlikely to ever go before the courts.
This is welcome news for REITs and confirms what some practitioners had either assumed or hoped would be the case since the SEC's Division of Investment Management issued a no-action letter on Oct.
Ford did that only after getting the Securities and Exchange Commission to write a so-called no-action letter that would allow the company to issue a prospectus without including the bond's normally required ratings from the major ratings agencies.
The new CFTC amendment adds new terms and conditions that must be satisfied by DME within 120 days in order to maintain the relief granted by the no-action letter.
NRSRO status was obtained by requesting a staff no-action letter from the SEC.
CPAs and audit committees should consider seeking assurance from the SEC on questionable areas through a no-action letter, which may take up to 90 days.
Securities and Exchange Commission for advice, in the form of a no-action letter, as to what fundraising Anka could do without being licensed as a securities broker.
The government intends to establish guidelines for the no-action letter system by the March 31, 2001, end of fiscal 2000 to pave the way for its launch in the three areas at the start of fiscal 2001, the officials said.
The SEC's most significant change involves a reversal of its 1992 no-action letter in a controversy involving Cracker Barrel Old Country Store.