Donaldson, Lufkin & Jenrette Securities Corp., predecessor in interest to Credit Suisse First Boston LLC (Order Granting Waiver Under Rule 602(e) the Securities Act of 1933)
Overview
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 8478 / August 26, 2004
ADMINISTRATIVE PROCEEDING
File No. 3-11609
In the Matter of
Donaldson, Lufkin & Jenrette Securities Corp., predecessor in interest to Credit Suisse First Boston LLC
Respondent.
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ORDER UNDER RULE 602(e) UNDER THE SECURITIES ACT OF 1933, GRANTING A WAIVER OF THE DISQUALIFICATION PROVISION OF RULE 602(c)(3)
Credit Suisse First Boston LLC ("CSFB") has submitted a letter, dated November 12, 2003, for a waiver of the disqualification from the exemption under Regulation E arising from its settlement of an administrative proceeding commenced by the Commission. On August 26, 2004, pursuant to CSFB's offer of settlement, the Commission issued an Order Instituting Administrative Proceedings, Making Findings, and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (the "Exchange Act") as to Donaldson, Lufkin & Jenrette Securities Corp., predecessor in interest to Credit Suisse First Boston LLC (the "Order"). In the Order, the Commission found that CSFB failed reasonably to supervise within the meaning of Section 15(b)(4)(E) of the Exchange Act.
The Order also: (a) censured CSFB; (b) required CSFB to pay a civil penalty in the amount of $1,000,000 to the United States Treasury; and (c) required CSFB to retain an Independent Consultant to review and evaluate the effectiveness of CSFB's supervisory and compliance systems, policies and procedures designed to detect and prevent violations of the federal securities laws concerning: (1) alternative mailing addresses; (2) wire transfers to exchange houses; (3) journals between unrelated accounts; and (4) review of incoming and outgoing correspondence received and sent by facsimile machine.
The Regulation E exemption is not available for the securities of an issuer if a director, officer, principal security holder, investment adviser or underwriter of the securities to be offered, or any partner, director or officer of such investment adviser or underwriter, is subject to a Commission order pursuant to Section 15(b) of the Exchange Act. See Rule 602(c)(3) under the Securities Act. The Commission may waive the disqualification upon a showing of good cause. See Rule 602(e).
Based on the representations set forth in CSFB's request, the Commission has determined that a showing of good cause has been made pursuant to Rule 602(e) and that the request for a waiver of the disqualification should be granted.
Accordingly, IT IS ORDERED, pursuant to Rule 602(e) under the Securities Act, that a waiver from the application of the disqualification provision of Rule 602(c)(3) under the Securities Act resulting from the entry of the Order is hereby granted.
By the Commission.
Jonathan G. Katz
Secretary
Last Reviewed or Updated: Aug. 26, 2004