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U.S. Securities and Exchange Commission

United States of America
Before the
Securities and Exchange Commission

Securities Act of 1933
Release No. 8351 / December 29, 2003


In the Matter of

CANADIAN IMPERIAL BANK OF COMMERCE

Respondent.


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ORDER UNDER RULE 602(e) OF THE SECURITIES ACT OF 1933 GRANTING A WAIVER OF THE DISQUALIFICATION PROVISION OF RULES 602(b)(4) AND 602(c)(2)

Canadian Imperial Bank of Commerce ("CIBC") has submitted a letter, dated November 11, 2003, requesting a waiver of the disqualification from the exemption from registration under Regulation E arising from the settlement with the Commission of a civil injunctive proceeding.

On December 22, 2003, the Commission filed a civil injunctive complaint against CIBC in the United States District Court for the Southern District of Texas alleging that CIBC aided and abetted Enron Corp.'s violations of Sections 10(b), 13(a), 13(b)(2)(A) and (B) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1.

Pursuant to an Offer of Settlement from CIBC, CIBC simultaneously filed a Consent of CIBC in which it agreed, without admitting or denying the allegations of the Commission's complaint, to the entry of a Final Judgment against CIBC ("Final Judgment"). Among other things, the Final Judgment permanently enjoins CIBC from violating Sections 10(b), 13(a), 13(b)(2)(A) and (B) and 13(b)(5) of the Exchange Act and Exchange Act Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1.

Rule 602(b)(4) makes the Regulation E exemption unavailable to an issuer if, among other things, such issuer or any of its affiliates is subject to any "order, judgment, or decree of any court of competent jurisdiction, entered within five years prior to the filing of such [Regulation E] notification, temporarily or permanently restraining or enjoining such person from engaging in or continuing any conduct or practice in connection with the purchase or sale of securities." Rule 602(c)(2) also makes the exemption unavailable to an issuer if, among other things, any investment adviser or underwriter of the securities to be issued is "temporarily or permanently restrained or enjoined by any court from engaging in or continuing any conduct or practice in connection with the purchase or sale of any security or arising out of such person's conduct as an underwriter, broker, dealer or investment adviser." Rule 602(e) provides, however, that the disqualification "shall not apply . . . if the Commission determines, upon a showing of good cause, that it is not necessary under the circumstances that the exemption be denied."

Based on the representations set forth in CIBC's November 11, 2003 request, the Commission has determined that, pursuant to Rule 602(e), a showing of good cause has been made and that it is not necessary under the circumstances that the exemption be denied as a result of the Final Judgment or as a result of any related injunction entered by a U.S. state or territorial court addressing the same activities as the settled injunctive proceeding.

Accordingly, IT IS ORDERED, pursuant to Rule 602(e) under the Securities Act, that a waiver of the disqualification provision of Rules 602(b)(4) and 602(c)(2) under the Securities Act resulting from the entry of the Final Judgment is hereby granted.

By the Commission.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/rules/final/33-8351.htm


Modified: 12/29/2003