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Federal Register / Vol. 70, No.

28 / Friday, February 11, 2005 / Notices 7315

common control with, the other person. provide the Boards with all information By the Commission.
Applicants state that MS&Co. is an concerning the Injunction and the Margaret H. McFarland,
affiliated person of each of the other application that is necessary for the Deputy Secretary.
Applicants within the meaning of Funds to fulfill their disclosure and [FR Doc. E5–577 Filed 2–10–05; 8:45 am]
section 2(a)(3) of the Act. Applicants other obligations under the Federal BILLING CODE 8010–01–P
state that, as a result of the Injunction, securities laws.
they would be subject to the 6. Applicants also assert that, if they
prohibitions of section 9(a). were barred from providing services to SECURITIES AND EXCHANGE
2. Section 9(c) of the Act provides that the Funds, the effect on their businesses COMMISSION
the Commission shall grant an and employees would be severe.
application for exemption from the Applicants state that they have [Release No. 34–51137; File No. SR–BSE–
committed substantial resources over 2005–06]
disqualification provisions of section
9(a) if it is established that these more than thirty years to establish an
Self-Regulatory Organizations; Notice
provisions, as applied to Applicants, are expertise in advising and underwriting
of Filing and Immediate Effectiveness
unduly or disproportionately severe or Funds. Applicants recently applied for
of Proposed Rule Change by the
that Applicants’ conduct has been such an exemption pursuant to section 9(c) of
Boston Stock Exchange, Inc. Relating
as not to make it against the public the Act for conduct relating to certain
to Its Minor Rule Violation Plan
interest or the protection of investors to research analysts’ conflicts of interest.5
grant the application. Applicants have In addition, Dean Witter Reynolds Inc., February 4, 2005.
filed an application pursuant to section the predecessor of Morgan Stanley DW Pursuant to Section 19(b)(1) of the
9(c) seeking a temporary and permanent Inc., previously sought and received an Securities Exchange Act of 1934
order exempting them from the exemption under section 9(c) of the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
disqualification provisions of section Act.6 notice is hereby given that on January
9(a) of the Act. Applicants’ Condition 31, 2005, the Boston Stock Exchange,
3. Applicants believe they meet the Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with
standards for exemption specified in Applicants agree that any order the Securities and Exchange
section 9(c). Applicants state that the granting the requested relief will be Commission (‘‘Commission’’) the
prohibitions of section 9(a) as applied to subject to the following condition: proposed rule change as described in
them would be unduly and Any temporary exemption granted
Items I, II, and III below, which items
disproportionately severe and that the pursuant to the application shall be
have been prepared by the Exchange.
conduct of Applicants has been such as without prejudice to, and shall not limit
The Exchange designated its filing as
the Commission’s rights in any manner
not to make it against the public interest non-controversial pursuant to section
with respect to, any Commission
or the protection of investors to grant 19(b)(3)(A) of the Act3 and Rule 19b–
investigation of, or administrative
the exemption from section 9(a). 4(f)(6).4 Accordingly, the proposed rule
4. Applicants state that none of their proceedings involving or against,
change became effective upon filing.
officers or employees who are engaged Covered Persons, including without
limitation, the consideration by the The Commission is publishing this
in the provision of investment advisory, notice to solicit comments on the
depositor or underwriting services to Commission of a permanent exemption
from section 9(a) of the Act requested proposed rule change from interested
the Funds participated in any way in persons.
the conduct underlying the Injunction. pursuant to the application or the
Applicants further state that the conduct revocation or removal of any temporary I. Self-Regulatory Organization’s
underlying the Injunction did not exemptions granted under the Act in Statement of the Terms of Substance of
involve any Funds. connection with the application. the Proposed Rule Change
5. Applicants state that the inability to Temporary Order The Exchange seeks to amend its rules
continue providing advisory services to The Commission has considered the related to its Minor Rule Violation Plan
the Funds and the inability to continue matter and finds that Applicants have (‘‘MRVP’’). The text of the proposed rule
serving as principal underwriter or made the necessary showing to justify change is available on BSE’s Web site
depositor to the Funds would result in granting a temporary exemption. (http://www.bostonstock.com/legal/
potentially severe hardships for the Accordingly, it is hereby ordered, index.html), at BSE’s principal office,
Funds and their shareholders. pursuant to section 9(c) of the Act, that and at the Commission’s Public
Applicants also state that they have Covered Persons are granted a Reference Room.
distributed, or will distribute as soon as temporary exemption from the II. Self-Regulatory Organization’s
is reasonably practical, written provisions of section 9(a), effective Statement of the Purpose of, and
materials, including an offer to meet in forthwith, solely with respect to the Statutory Basis for, the Proposed Rule
person to discuss the materials, to the Injunction, subject to the condition in Change
boards of directors or trustees of the the application, until the date the
Funds (the ‘‘Boards’’), including the In its filing with the Commission, the
Commission takes final action on an
directors or trustees who are not Exchange included statements
application for a permanent order.
‘‘interested persons,’’ as defined in concerning the purpose of, and basis for,
section 2(a)(19) of the Act, of the Funds concerning the Injunction, any impact on the UITs,
the proposed rule change and discussed
and their independent legal counsel, as and the application, and will provide any other any comments it received on the
defined in rule 0–1(a)(6) under the Act, related information that may be requested by the proposed rule change. The text of these
if any, regarding the Injunction, any trustee. statements may be examined at the
5 Morgan Stanley Investment Advisers Inc.,
impact on the Funds, and the places specified in Item IV below. The
Investment Company Act Release No. 26236 (Oct.
application.4 The Applicants will 31, 2003) (notice and temporary order).
1 15 U.S.C. 78s(b)(1).
6 Dean Witter Reynolds Inc., Investment Company
4 With 22 17 CFR 240.19b–4.
respect to Funds that are unit investment Act Release Nos. 17887 (Nov. 29, 1990) (notice and
3 15 U.S.C. 78s(b)(3)(A).
trusts (‘‘UITs’’), Applicants will provide written temporary order) and 18119 (Apr. 29, 1991)
notification to the trustee for each of the UITs (permanent order). 4 17 CFR 240.19b–4(f)(6).

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7316 Federal Register / Vol. 70, No. 28 / Friday, February 11, 2005 / Notices

Exchange has prepared summaries, set III. Date of Effectiveness of the 450 Fifth Street, NW., Washington, DC
forth in sections A, B, and C below, of Proposed Rule Change and Timing for 20549–0609.
the most significant aspects of such Commission Action All submissions should refer to File
statements. BSE asserts that the foregoing rule has Number SR–BSE–2005–06. This file
A. Self-Regulatory Organization’s become effective pursuant to Section number should be included on the
Statement of the Purpose of, and 19(b)(3)(A) of the Act 6 and Rule 19b– subject line if e-mail is used. To help the
Statutory Basis for, the Proposed Rule 4(f)(6) thereunder 7 because it does not Commission process and review your
Change significantly affect the protection of comments more efficiently, please use
investors or the public interest or only one method. The Commission will
1. Purpose impose any significant burden on post all comments on the Commission’s
The Exchange is proposing to add a competition. BSE has requested that the Internet Web site (http://www.sec.gov/
new section to its MRVP which would Commission waive the requirement that rules/sro.shtml). Copies of the
set forth procedures for a member the rule change not become operative submission, all subsequent
against whom formal disciplinary action for 30 days after the date of the filing, amendments, all written statements
is taken by the Exchange to consent to as set forth in Rule 19b–4(f)(6)(iii).8 The with respect to the proposed rule
the charges being levied and waive Commission finds good cause for the change that are filed with the
formal disciplinary hearing. These proposed rule change to become Commission, and all written
procedures would be similar to those set operative prior to the 30th day after the communications relating to the
forth in NASD Rule 9216, ‘‘Acceptance, date of publication of notice of filing in proposed rule change between the
Waiver, and Consent; Plan Pursuant to the Federal Register. The Commission Commission and any person, other than
SEC Rule 19d–1(c)(2),’’ and provide that notes that the proposed rule is those that may be withheld from the
a BSE member may, upon being notified substantially similar to NASD Rule public in accordance with the
of disciplinary charges by the 9216,9 which was previously approved provisions of 5 U.S.C. 552, will be
Exchange’s Enforcement Department, by the Commission after notice and available for inspection and copying in
execute a written letter which (1) comment and, therefore, does not raise the Commission’s Public Reference
accepts the charges, (2) consents to the any new regulatory issues.10 Room. Copies of such filing also will be
imposition of a sanction, and (3) agrees At any time within 60 days of the available for inspection and copying at
to waive the right to a hearing of appeal filing of the proposed rule change, the the principal office of BSE. All
to challenge the validity of the letter. In Commission may summarily abrogate comments received will be posted
proposing such procedures, the such rule change if it appears to the without change; the Commission does
Exchange is seeking to provide its Commission that such action is not edit personal identifying
members with an intermediary necessary or appropriate in the public information from submissions. You
disciplinary step, short of a formal interest, for the protection of investors, should submit only information that
hearing, which would permit its or otherwise in furtherance of the you wish to make available publicly. All
members to avoid formal proceedings in purposes of the Act. submissions should refer to File
instances where they accept liability Number SR–BSE–2005–06 and should
IV. Solicitation of Comments be submitted on or before March 4,
from the outset.
Interested persons are invited to 2005.
2. Statutory Basis submit written data, views, and For the Commission, by the Division of
The statutory basis for the proposed arguments concerning the foregoing, Market Regulation, pursuant to delegated
rule change is Section 6(b)(5) of the including whether the proposed rule authority.11
Act,5 in that it is designed to promote change is consistent with the Act. Margaret H. McFarland,
just and equitable principles of trade, to Comments may be submitted by any of Deputy Secretary.
foster cooperation and coordination the following methods: [FR Doc. E5–581 Filed 2–10–05; 8:45 am]
with persons engaged in regulating Electronic Comments BILLING CODE 8010–01–P
securities transactions, to remove
impediments to perfect the mechanism • Use the Commission’s Internet
of a free and open market and a national comment form (http://www.sec.gov/
SECURITIES AND EXCHANGE
market system and, in general, to protect rules/sro.shtml); or
COMMISSION
investors and the public interest. • Send an e-mail to rule-
comments@sec.gov. Please include File [Release No. 34–51145; File No. SR–PCX–
B. Self-Regulatory Organization’s Number SR–BSE–2005–06 on the 2005–02]
Statement on Burden on Competition subject line.
The Exchange does not believe that Self-Regulatory Organizations; Pacific
Paper Comments Exchange, Inc.; Notice of Filing and
the proposed rule change will impose
any burden on competition that is not • Send paper comments in triplicate Immediate Effectiveness of Proposed
necessary or appropriate in furtherance to Jonathan G. Katz, Secretary, Rule Change Relating to Market Maker
of the purposes of the Act. Securities and Exchange Commission, Cleanup Order Administrative Change

C. Self-Regulatory Organization’s 65
February 7, 2005.
U.S.C. 78s(b)(3)(A).
Statement on Comments on the 7 17
CFR 240.19b–4(f)(6). Pursuant to Section 19(b)(1) of the
Proposed Rule Change Received From 8 17 CFR 240.19b–4(f)(6)(iii). Securities Exchange Act of 1934
Members, Participants, or Others 9 See Securities Exchange Release No. 32383 (May (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
28, 1993), 58 FR 31768 (June 4, 1993) (SR–NASD– notice is hereby given that on January
The Exchange has neither solicited 93–6).
21, 2005, the Pacific Exchange, Inc.
nor received any comments on this 10 Rule 19b–4(f)(6) also requires a self-regulatory

proposed rule change. organization to give written notice of a proposed


11 17 CFR 200.30–3(a)(12).
rule change filed pursuant to this subsection at least
1 15 U.S.C. 78s(b)(1).
five business days prior to filing. BSE complied
5 15 U.S.C. 78f(b)(5). with this requirement. 2 17 CFR 240.19b–4.

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