SEC Conducts Largest-Ever Regional Training Program with Capital Markets Board of Turkey
The Commission announced today that it completed its largest regional training program ever, the Capital Market Development, Enforcement and Oversight Training Program, held in Istanbul, Turkey, from October 20 to 24. The five-day program, which was hosted and co-sponsored by the Capital Markets Board of Turkey (CMBT), included intensive training on methods for conducting investigations of insider trading, financial accounting fraud, market manipulation, pyramid schemes, and broker-dealer abuses. The training also included instruction on broker dealer examinations, compliance, and a variety of market development topics, as well as discussion of issues raised by current market events.
The Istanbul program featured nearly 300 delegates from 30 different countries located across Europe, the Middle East, Asia and the Caribbean. The program was conducted by both SEC and CMBT staff, and was held at the Istanbul Stock Exchange.
SEC Chairman Christopher Cox said, "At this time when the SEC is working closely with international regulators on global market stability, it is gratifying that so many of our counterparts from around the world could come together to share best practices and solidify partnerships and strategies. Dealing with market turmoil, fraud and abuse in the current environment requires learning from one another. Events such as this help ensure that regulatory authorities around the globe will be better prepared to handle current and future financial crises."
Dr. Turan Erol, Chairman of the CMBT, said, "We are well aware of the fact that globalization and increasing international investments require more international collaboration and better understanding of each other. Hence, sharing our experiences and increasing our networks across the world will help us significantly in accomplishing our missions. In this regard, we are open to take up new ideas and offers that will help provide safer, sounder and more efficient financial markets. With these kinds of international events, it is a great honor to be able to contribute to promoting safer and sounder national and international financial markets for a more prosperous world. Having this opportunity, I would like to thank the U.S. SEC's Chairman, Mr. Christopher Cox, and the SEC's distinguished staff for enabling this program and thank speakers, panelists and participants for their participation and contributions."
Ethiopis Tafara, Director of the SEC's Office of International Affairs added, "The Commission's technical assistance programs continue to be a very valuable tool in bringing together regulators to recognize how inter-related capital markets have become, and develop strategies together to promote investor protection. Conducting these programs abroad also serves to provide the Commission with unique insights into foreign market developments and practices. We are grateful to the leadership and staff of the Capital Markets Board of Turkey for so graciously hosting this important event."
The SEC's technical assistance training program consists of bilateral and regional training programs, assessments, consultations, and review and comment on statutory and regulatory initiatives. The SEC has provided training for more than 1,900 foreign capital market officials from 125 foreign jurisdictions in fiscal year 2008 alone.
For more information on the SEC's technical assistance program, contact Dr. Robert M. Fisher or Z. Scott Birdwell at the Office of International Affairs at 202-551-6690, or by email at OIA@SEC.gov. (Press Rel. 2008-256)
RULES AND RELATED MATTERS
SEC Adopts Amendments to Rules for Mandatory Electronic Submission of Applications for Orders under the Investment Company Act and Filings Made Pursuant to Regulation E
The Commission has issued a release adopting amendments that will expand the types of submissions it requires companies and other entities to submit electronically.
The amendments make mandatory, effective Jan. 1, 2009, the electronic submission of applications for orders under any section of the Investment Company Act of 1940 (Investment Company Act) and Regulation E filings of small business investment companies and business development companies. Also, the Commission amended Rule 0-2 under the Investment Company Act to eliminate the requirement that certain documents accompanying an application be notarized and the requirement that applicants submit a draft notice as an exhibit to an application. (Rel. 33-8981; 34-58874; IC-28476; Press Rel. 2008-257)
In the Matter of in Cabot Medical Corp.
An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Seven Respondents (Default Order) in Cabot Medical Corp., Administrative Proceeding No. 3-13198. The Order Instituting Proceedings alleged that nine Respondents each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission.
The Default Order finds these allegations to be true as to seven Respondents. It revokes the registrations of each class of registered securities of Cabot Medical Corp., CacheStream Corp., Cannon Express, Inc., Capita Research Group, Inc., Capital Appreciation Plus LP I, Capital Dome, Inc., and Caredata.com, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934.
The other two Respondents, Cadema Corp. and Capfilm, Inc., previously submitted settlement offers, which the Commission accepted. (Rel. 34-58866; File No. 3-13198)
In the Matter of Wendt-Bristol Health Services Corporation, by Default, in Wendt-Bristol Health Services, Corp.
An Administrative Law Judge has issued an Order Making Findings and Revoking the Registration of Securities of Wendt-Bristol Health Services Corporation, by Default, in Wendt-Bristol Health Services, Corp., Admin. Proc. No. 3-13239 (Default Order). The Default Order finds that the named Respondent failed to file required periodic reports with the Commission. Because of these reporting failures, Respondent failed to comply with Section 13(a) of the Securities Exchange Act of 1934 and Exchange Act Rules 13a-1 and 13a-13. The Default Order finds it necessary and appropriate for the protection of investors to revoke the registration of each class of the Respondent's registered securities. (Rel. 34-58869; File No. 3-13239)
INVESTMENT COMPANY ACT RELEASES
Forward Funds and Forward Management, LLC
An order has been issued on an application filed by Forward Funds and Forward Management, LLC exempting applicants from Section 15(a) of the Investment Company Act and Rule 18f-2 under the Act. The order permits applicants to enter into and materially amend subadvisory agreements without shareholder approval. (Rel. IC-28469 - October 27)
Dodge & Cox Funds and Dodge & Cox Incorporated
An order has been issued on an application filed by Dodge & Cox Funds and Dodge & Cox Incorporated under Section 6(c) of the Investment Company Act for an exemption from Sections 18(f) and 21(b) of the Act, under Section 12(d)(1)(J) of the Act for an exemption from Section 12(d)(1) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Sections 17(a)(1) and 17(a)(3) of the Act, and under Section 17(d) of the Act and Rule 17d-1 under the Act to permit certain joint arrangements. The order permits certain registered open-end management investment companies to participate in a joint lending and borrowing facility. (Rel. IC-28470 - October 27)
H&Q Healthcare Investors, et al.
An order has been issued on an application filed by H&Q Healthcare Investors, et al., for an order under Rule 17d-1 under the Investment Company Act. The order permits certain registered management investment companies to coinvest in private placement securities with certain unregistered funds. (Rel. IC-28472 - October 28)
Approval of Proposed Rule Changes
The Commission approved a proposed rule change (SR-NYSE-2008-52), as modified by Amendment Nos. 1, 2 and 3 thereto, submitted pursuant to Section 19(b)(1) and Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange to modify the method by which securities are allocated and reallocated to specialist units and to establish an allocation system based on a single objective measure to determine a specialist unit's eligibility to participate in the allocation process. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58857)
The Commission granted approval to a proposed rule change (SR-BSE-2008-45) submitted by the Boston Stock Exchange to amend its by-laws. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58864)
Proposed Rule Change
The International Securities Exchange filed a proposed rule change pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934 (SR-ISE-2008-78) relating to quoting obligations for Competitive Market Makers. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58861)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2008-110) relating to the Short Term Option Series Pilot Program has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58870)
A proposed rule change filed by the BATS Exchange (SR-BATS-2008-009) to implement fees for use of BATS Exchange has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58871)
JOINT INDUSTRY PLAN RELEASES
Notice of Filing and Immediate Effectiveness of Amendment No. 20 to the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis
Pursuant to Rule 608 under the Securities Exchange Act of 1934, the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation, and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privilege Basis, (Nasdaq/UTP Plan or Plan) has filed an amendment to the Plan (S7-24-89) to add BATS Exchange, Inc. as a new Participant; modify the name of the National Association of Securities Dealers and the Philadelphia Stock Exchange; modify Exhibit 1 to be in conformance with Regulation NMS; and make ministerial changes to the text of the Plan. Publication is expected in the Federal Register during the week of October 27. (Rel. 34-58863)
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