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Effective November 4, 2022, This Letter is Withdrawn. Investment Adviser Act of 1940 - Rule 206(4)-3
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RESPONSE OF THE OFFICE OF CHIEF COUNSEL |
IM Ref. No. 2004723152 |
We would not recommend enforcement action to the Commission under Section 206(4) of the Investment Advisers Act of 1940 ("Advisers Act") and Rule 206(4)-3 thereunder if any investment adviser that is required to be registered pursuant to Section 203 of the Advisers Act pays to Thomas Weisel Partners LLC (the "Settling Firm"), a registered broker-dealer and investment adviser, or any of the Settling Firm's associated persons, as defined in Section 202(a)(17) of the Advisers Act, a cash fee, directly or indirectly, for the solicitation of advisory clients in accordance with Rule 206(4)-3,1 notwithstanding a judgment of injunction from the United States District Court for the Southern District of New York (the "Final Judgment")2 and any Related State Judgment3 that otherwise would preclude such an investment adviser from paying the Settling Firm a solicitation fee.
Our position is based on the facts and representations in your letter dated September 24, 2004, particularly the Settling Firm's representations that:
This position applies only to the disqualification under Rule 206(4)-3 resulting from the Final Judgment and any Related State Judgment and not to any other basis for disqualification under Rule 206(4)-3 that may exist or arise with respect to the Settling Firm or any of its associated persons.
Stephan N. Packs
Senior Counsel
The entry of the Final Judgment and any Related State Judgment, absent the issuance of an order by the Commission pursuant to Section 9(c) of the Company Act that exempts the Settling Firm from the provisions of Section 9(a) of the Company Act, would effectively prohibit the Settling Firm and its associated persons from serving or acting in any of the Prohibited Capacities. You state that, as of the date of your letter, neither the Settling Firm nor any of its associated persons serves or acts in any of the Prohibited Capacities, and that the Settling Firm and its associated persons will not act or serve in any of the Prohibited Capacities unless and until the Commission issues an order pursuant to Section 9(c) of the Company Act that exempts the Settling Firm from the provisions of Section 9(a) of the Company Act operative as a result of the Final Judgment and any Related State Judgment.
The Incoming Letter is in Acrobat format.
http://www.sec.gov/divisions/investment/noaction/twp092404.htm
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