Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Declaration of Effectiveness of the Philadelphia Stock Exchange Fingerprinting Plan, 53141-53142 [E6-14876]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 174 / Friday, September 8, 2006 / Notices
sroberts on PROD1PC70 with NOTICES
section 34(b) of the Act by making a
material misrepresentation to the
Commission in the Application (‘‘Order
Finding Violations’’).2 The Commission
is issuing this notice of the
Commission’s intention to rescind the
Exemptive Order on the basis of the
Order Finding Violations.
Hearing or Notification of Hearing: An
order rescinding the Exemptive Order
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary. Hearing
requests should be received by the
Commission by 5:30 p.m. on September
25, 2006. Hearing requests should state
the nature of the writer’s interest, the
reason for the request, and the issues
contested. Persons who wish to be
notified of a hearing may request
notification by writing to the
Commission’s Secretary.
ADDRESSES: Secretary, Commission, 100
F Street, NE., Washington, DC 20549–
1090.
FOR FURTHER INFORMATION CONTACT:
Nadya B. Roytblat, Assistant Director, at
202–551–6821 (Division of Investment
Management, Office of Investment
Company Regulation).
Background
1. Each Applicant is a closed-end
investment company registered under
the Act. The Exemptive Order granted
each Applicant relief from section 19(b)
of the Act and rule 19b–1 under the Act
so that the Applicant may make up to
twelve distributions of long-term capital
gains in any one taxable year in
accordance with the Applicants’
distribution policy with respect to its
common stock. Section 19(b) and rule
19b–1 generally limit to one the number
of distributions of long-term capital
gains that a registered investment
company may make each year. The
Exemptive Order was issued pursuant to
the Commission’s authority set forth in
section 6(c) of the Act which provides,
in relevant part, that the Commission,
by order upon application, may exempt
any person from any provision of the
Act or any rule under the Act, if and to
the extent that the exemption is
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act.
2. DSC, a Delaware corporation,
provides accounting and administrative
services to the Applicants. According to
the Order Finding Violations, DSC was
2 In the Matter of Delaware Service Company Inc.,
Release No. IC–27473, Administrative Proceeding
File No. 3–12403 (August 31, 2006).
VerDate Aug<31>2005
19:38 Sep 07, 2006
Jkt 208001
responsible for determining the amount
and composition of the Applicants’
distributions to shareholders; providing
the Applicants’ transfer agent, dividend
disbursing agent, and custodian with
information necessary to effect payment
of dividends and distributions; and
preparing and filing all reports and
notices required by the Federal
securities laws and regulations,
including any notices required by
section 19(a) of the Act.
3. Section 19(a) of the Act and rule
19a–1 under the Act make it unlawful
for a registered investment company to
pay any dividend or make any
distribution in the nature of a dividend
payment, wholly or partly, from any
source other than net income unless
such payment is accompanied by a
written statement which adequately
discloses the source of such payment
(‘‘section 19(a) notice’’). According to
the Order Finding Violations, from
January 2000 through March 2004, the
Applicants, among others, made
distributions to their common
shareholders that, in large part, were a
return of the shareholders’ capital, and
none of the distributions was
accompanied by the required section
19(a) notice. Thus, during the relevant
time period, the Applicants failed to
provide the section 19(a) notices
required by the Act. The Order Finding
Violations found that DSC caused and
aided and abetted the Applicants’
violations of section 19(a) and rule 19a–
1.
4. The Order Finding Violations also
found that the Exemptive Order was
granted, in part, on the basis of a
representation in the Application that
the Applicants were providing the
required 19(a) notices to their
shareholders, but that the representation
was an untrue statement of a material
fact. The Application was prepared by
DSC on behalf of the Applicants. The
Order Finding Violations thus found
that DSC violated section 34(b) of the
Act. Section 34(b) of the Act, in relevant
part, makes it unlawful for any person
to make any untrue statement of a
material fact in any application filed
pursuant to the Act.
Legal Analysis
Section 38(a) of the Act states, in
relevant part, that the Commission shall
have authority to rescind an order as is
necessary or appropriate to the exercise
of the powers conferred upon the
Commission elsewhere in the Act. The
Commission issues orders under section
6(c) of the Act, such as the Exemptive
Order, based on the representations, and
subject to the terms and conditions,
contained in the applications seeking
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
53141
the orders. If an application contains an
untrue statement of a material fact, the
Commission cannot properly exercise
its power to make the findings required
by section 6(c) of the Act.3 The
Commission therefore believes that it is
necessary and appropriate to the
exercise of the powers conferred upon
the Commission in section 6(c) of the
Act to rescind the Exemptive Order on
the basis of the Order Finding
Violations.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6–14879 Filed 9–7–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54396]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Declaration of Effectiveness of the
Philadelphia Stock Exchange
Fingerprinting Plan
August 31, 2006.
On July 17, 2006, the Philadelphia
Stock Exchange, Inc. (‘‘Phlx’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
fingerprint plan (‘‘Plan’’) pursuant to
Rule 17f–2(c) 1 under the Securities
Exchange Act of 1934 (‘‘Act’’).2 A copy
of the Plan is attached as Exhibit A.
The Phlx believes that the Plan will
facilitate compliance by Exchange
members with Section 17(f)(2) of the Act
and Rule 17f–2 thereunder by providing
a facility for the fingerprints of
directors, partners, officers and
employees of Exchange members to be
submitted to the Attorney General of the
United States and processed
electronically.
Under the Plan, all persons who are
seeking registration with the Phlx or are
currently registered with the Phlx
submit fingerprint cards or fingerprint
results to the NASD, which then
forwards the fingerprints to the Federal
Bureau of Investigation (‘‘FBI’’) (the
fingerprint processing arm of the
Attorney General). The FBI identifies
submitted fingerprints, retrieves
relevant criminal history information,
and returns fingerprint reports to the
NASD. Phlx members will be able to
3 The Commission also reiterates that any
exemption provided by an order issued under the
Act is available only to a person that complies with
the terms and conditions set forth in the application
based on which the exemption was granted.
1 17 CFR 240.17f–2(c).
2 15 U.S.C. 78a et seq.
E:\FR\FM\08SEN1.SGM
08SEN1
53142
Federal Register / Vol. 71, No. 174 / Friday, September 8, 2006 / Notices
view the status and results of
fingerprints, including any relevant
criminal history information, through
the NASD’s Web Central Registration
Depository (Web CRD) system after
submission to the Attorney General.
The Commission has reviewed the
procedures detailed in the Plan and
believes that the Plan is consistent with
the public interest and the protection of
investors. Thus, the Commission
declares the Plan effective.
The Commission notes that securities
industry fingerprinting procedures are
in a state of flux due to rapidly
advancing technology. In the event that
an industry-wide standard is adopted or
becomes prevalent and in the event that
this Plan substantially differs therefrom,
the Commission would expect the Phlx
to revise its fingerprint plan to
incorporate the industry-wide standard.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.3
Nancy M. Morris,
Secretary.
Exhibit A—Philadelphia Stock
Exchange Fingerprinting Plan
sroberts on PROD1PC70 with NOTICES
The Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) submits
this amendment to its Fingerprinting
Plan (‘‘Amended Fingerprinting Plan’’)
pursuant to Section 17(f)(2) of the
Securities Exchange Act of 1934 (‘‘Act’’)
and Rule 17f–2(c) thereunder. This
Amended Fingerprinting Plan
supersedes and replaces the Exchange’s
current fingerprinting plan.4 The
purpose of this Amended Fingerprinting
Plan is to facilitate compliance by
Exchange Members with Section 17(f)(2)
of the Act and Rule 17f–2 thereunder by
providing a facility for the fingerprints
of directors, partners, officers and
employees of Exchange members to be
submitted to the Attorney General of the
United States and processed
electronically.
The Exchange has established an
arrangement with the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) to permit all individuals that
must be registered or approved by the
Exchange (‘‘registered persons’’) to be
electronically registered with the
Exchange through the NASD’s Web
Central Registration Depository (‘‘Web
CRD’’). Web CRD is a Web-based system
that provides broker-dealers and their
associated persons with ‘‘one-stop
3 17
CFR 200.30–3(a)(17)(iii).
Exchange’s current fingerprinting plan was
approved on a permanent basis by the Securities
and Exchange Commission (‘‘Commission’’) on
December 23, 1976. See Securities Exchange Act
Release No. 13105, 42 FR 753 (January 4, 1977).
4 The
VerDate Aug<31>2005
19:38 Sep 07, 2006
Jkt 208001
filing’’ with the Commission, the NASD
and other self-regulatory organizations
and regulators. Web CRD is operated by
the NASD and is used by participating
regulators in connection with registering
and licensing broker-dealers and their
associated persons. Pursuant to its
Memorandum of Understanding with
the NASD 5, all members submit hard
copy fingerprint cards or results of
processed cards to the NASD.
In connection with the arrangement
with the NASD, all persons who are
seeking registration with the Exchange
or are currently registered with the
Exchange, submit fingerprint cards or
fingerprint results to the NASD for
processing and/or submission to the
Attorney General. The Attorney General
provides the NASD with fingerprint
processing results for persons seeking
registration, and the results are provided
to the members. The NASD notifies the
Exchange if the fingerprint results
received by the NASD contain
information indicating that the person is
subject to a statutory disqualification. In
such an instance, the Exchange reviews
the fingerprint results to determine the
possible existence of a statutory
disqualification as defined in Section
3(a)(39) of the Act, and takes
appropriate action, if necessary,
concerning eligibility or continued
eligibility of the individual for
employment or association with an
Exchange member. Any maintenance of
fingerprint records by the Exchange
shall be for the Exchange’s own
administrative purposes, and the
Exchange is not undertaking to maintain
fingerprint records on behalf of
Exchange members pursuant to Rule
17f–2(d)(2). The Exchange advises its
members and member applicants of any
fees charged in connection with
processing of fingerprints pursuant to
the Amended Fingerprinting Plan. The
Exchange will file any such Exchange
member fees with the Commission
pursuant to Section 19(b) of the Act.
The Exchange shall not be liable for
losses or damages of any kind in
connection with the fingerprint services,
as a result of a failure to properly follow
the procedures described above, or as a
result of lost or delayed fingerprint
cards, fingerprint records, or fingerprint
processing results, or as a result of any
action by the Exchange or the
Exchange’s failure to take action in
connection with this Amended
Fingerprinting Plan.
[FR Doc. E6–14876 Filed 9–7–06; 8:45 am]
BILLING CODE 8010–01–P
5 The Exchange and NASD executed a
Memorandum of Understanding on September 22,
2005.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54397; File No. SR–BSE–
2005–11]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Order Granting Accelerated
Approval of Proposed Rule Change
and Amendments Nos. 1 and 2 Thereto
Relating to Rules to Allow the Listing
and Trading of Options on Indices on
the Boston Options Exchange
August 31, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 5,
2005, the Boston Stock Exchange, Inc.
(‘‘BSE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. On July 12, 2006, BSE
filed Amendment No. 1 to the proposed
rule change.3 On August 29, 2006, BSE
filed Amendment No. 2 to the proposed
rule change.4 The Commission is
publishing this notice and order to
solicit comments on the proposal from
interested persons and to approve the
proposed rule change, as amended, on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BSE proposes to adopt rules which
would allow the Boston Options
Exchange (‘‘BOX’’) to list and trade
options on indices, including rules
pursuant to Rule 19b–4(e) for the listing
and trading of broad-based index
options.5 BSE also seeks approval
herein for BOX to list and trade index
options and long term index options
(‘‘LEAPs’’) on the full value of the
Nasdaq 100 index (‘‘NDX’’), the one
tenth value of the Nasdaq 100 index
(‘‘MNX’’), and the Russell 2000 Index
(‘‘RUT’’). The text of the proposed rule
change, as amended is available on
BSE’s Web site (https://
www.bostonstock.com), at BSE’s
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 replaced and superseded the
original rule filing in its entirety.
4 In Amendment No. 2, BSE removed its proposal
to have generic listing standards for narrow-based
options and added its proposal to list and trade
options and long term index options on the full
value of the Nasdaq 100 index, the one tenth value
of the Nasdaq 100 index and the Russell 2000
index. Amendment No. 2 replaced and superseded
the original rule filing in its entirety.
5 17 CFR 240.19b–4(e).
2 17
E:\FR\FM\08SEN1.SGM
08SEN1
]]>Agencies
[Federal Register Volume 71, Number 174 (Friday, September 8, 2006)]
[Notices]
[Pages 53141-53142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14876]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54396]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Declaration of Effectiveness of the Philadelphia Stock Exchange
Fingerprinting Plan
August 31, 2006.
On July 17, 2006, the Philadelphia Stock Exchange, Inc. (``Phlx'')
filed with the Securities and Exchange Commission (``Commission'') a
fingerprint plan (``Plan'') pursuant to Rule 17f-2(c) \1\ under the
Securities Exchange Act of 1934 (``Act'').\2\ A copy of the Plan is
attached as Exhibit A.
---------------------------------------------------------------------------
\1\ 17 CFR 240.17f-2(c).
\2\ 15 U.S.C. 78a et seq.
---------------------------------------------------------------------------
The Phlx believes that the Plan will facilitate compliance by
Exchange members with Section 17(f)(2) of the Act and Rule 17f-2
thereunder by providing a facility for the fingerprints of directors,
partners, officers and employees of Exchange members to be submitted to
the Attorney General of the United States and processed electronically.
Under the Plan, all persons who are seeking registration with the
Phlx or are currently registered with the Phlx submit fingerprint cards
or fingerprint results to the NASD, which then forwards the
fingerprints to the Federal Bureau of Investigation (``FBI'') (the
fingerprint processing arm of the Attorney General). The FBI identifies
submitted fingerprints, retrieves relevant criminal history
information, and returns fingerprint reports to the NASD. Phlx members
will be able to
[[Page 53142]]
view the status and results of fingerprints, including any relevant
criminal history information, through the NASD's Web Central
Registration Depository (Web CRD[supreg]) system after submission to
the Attorney General.
The Commission has reviewed the procedures detailed in the Plan and
believes that the Plan is consistent with the public interest and the
protection of investors. Thus, the Commission declares the Plan
effective.
The Commission notes that securities industry fingerprinting
procedures are in a state of flux due to rapidly advancing technology.
In the event that an industry-wide standard is adopted or becomes
prevalent and in the event that this Plan substantially differs
therefrom, the Commission would expect the Phlx to revise its
fingerprint plan to incorporate the industry-wide standard.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
---------------------------------------------------------------------------
\3\ 17 CFR 200.30-3(a)(17)(iii).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
Exhibit A--Philadelphia Stock Exchange Fingerprinting Plan
The Philadelphia Stock Exchange, Inc. (``Phlx'' or ``Exchange'')
submits this amendment to its Fingerprinting Plan (``Amended
Fingerprinting Plan'') pursuant to Section 17(f)(2) of the Securities
Exchange Act of 1934 (``Act'') and Rule 17f-2(c) thereunder. This
Amended Fingerprinting Plan supersedes and replaces the Exchange's
current fingerprinting plan.\4\ The purpose of this Amended
Fingerprinting Plan is to facilitate compliance by Exchange Members
with Section 17(f)(2) of the Act and Rule 17f-2 thereunder by providing
a facility for the fingerprints of directors, partners, officers and
employees of Exchange members to be submitted to the Attorney General
of the United States and processed electronically.
---------------------------------------------------------------------------
\4\ The Exchange's current fingerprinting plan was approved on a
permanent basis by the Securities and Exchange Commission
(``Commission'') on December 23, 1976. See Securities Exchange Act
Release No. 13105, 42 FR 753 (January 4, 1977).
---------------------------------------------------------------------------
The Exchange has established an arrangement with the National
Association of Securities Dealers, Inc. (``NASD'') to permit all
individuals that must be registered or approved by the Exchange
(``registered persons'') to be electronically registered with the
Exchange through the NASD's Web Central Registration Depository (``Web
CRD''). Web CRD is a Web-based system that provides broker-dealers and
their associated persons with ``one-stop filing'' with the Commission,
the NASD and other self-regulatory organizations and regulators. Web
CRD is operated by the NASD and is used by participating regulators in
connection with registering and licensing broker-dealers and their
associated persons. Pursuant to its Memorandum of Understanding with
the NASD \5\, all members submit hard copy fingerprint cards or results
of processed cards to the NASD.
---------------------------------------------------------------------------
\5\ The Exchange and NASD executed a Memorandum of Understanding
on September 22, 2005.
---------------------------------------------------------------------------
In connection with the arrangement with the NASD, all persons who
are seeking registration with the Exchange or are currently registered
with the Exchange, submit fingerprint cards or fingerprint results to
the NASD for processing and/or submission to the Attorney General. The
Attorney General provides the NASD with fingerprint processing results
for persons seeking registration, and the results are provided to the
members. The NASD notifies the Exchange if the fingerprint results
received by the NASD contain information indicating that the person is
subject to a statutory disqualification. In such an instance, the
Exchange reviews the fingerprint results to determine the possible
existence of a statutory disqualification as defined in Section
3(a)(39) of the Act, and takes appropriate action, if necessary,
concerning eligibility or continued eligibility of the individual for
employment or association with an Exchange member. Any maintenance of
fingerprint records by the Exchange shall be for the Exchange's own
administrative purposes, and the Exchange is not undertaking to
maintain fingerprint records on behalf of Exchange members pursuant to
Rule 17f-2(d)(2). The Exchange advises its members and member
applicants of any fees charged in connection with processing of
fingerprints pursuant to the Amended Fingerprinting Plan. The Exchange
will file any such Exchange member fees with the Commission pursuant to
Section 19(b) of the Act.
The Exchange shall not be liable for losses or damages of any kind
in connection with the fingerprint services, as a result of a failure
to properly follow the procedures described above, or as a result of
lost or delayed fingerprint cards, fingerprint records, or fingerprint
processing results, or as a result of any action by the Exchange or the
Exchange's failure to take action in connection with this Amended
Fingerprinting Plan.
[FR Doc. E6-14876 Filed 9-7-06; 8:45 am]
BILLING CODE 8010-01-P
