[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Notices]
[Pages 17530-17531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7176]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66624]


Order Granting an Application of Edward Jones & Co. LLP Exemption 
From Exchange Act Section 11(d)(1) Pursuant to Exchange Act Section 
36(a)

March 20, 2012.
    By letter dated December 5, 2011, counsel for Edward Jones & Co., 
L.P. (``Edward Jones'') requested that the Securities and Exchange 
Commission (``Commission'') issue to Edward Jones an exemption from 
Section 11(d)(1) of the Securities Exchange Act of 1934 (``Exchange 
Act'') pursuant to Section 36(a) of the Exchange Act. Specifically, the 
letter requested that the Commission exempt Edward Jones from the 
prohibitions of Section 11(d)(1) of the Exchange Act if Edward Jones 
extends to a customer margin on newly-purchased shares of mutual funds 
not managed or sponsored by Edward Jones or any affiliate of Edward 
Jones (``non-proprietary mutual funds'') in instances in which the 
customer makes a dollar-for-dollar substitution by selling an already-
margined non-proprietary mutual fund and buying another non-proprietary 
mutual fund on margin without incurring any fees, commissions or other 
costs for the transactions and without Edward Jones otherwise charging 
the respective customers any fees, commissions or other costs to effect 
the transactions.
    We find that it is appropriate and in the public interest and 
consistent with the protection of investors to grant Edward Jones a 
conditional exemption from Section 11(d)(1) of the Exchange Act.

Conclusion

    It is hereby ordered, pursuant to Section 36(a) of the Exchange 
Act, that Edward Jones, based on the representations and the facts 
presented in its letter and subject to the conditions contained in this 
order, is exempt from the new issue lending restriction of Section 
11(d)(1) of the Exchange Act to the extent that Edward Jones extends to 
a customer margin on newly-purchased shares of non-proprietary mutual 
funds in instances in which the customer makes a dollar-for-dollar 
substitution by selling an already-margined non-

[[Page 17531]]

proprietary mutual fund and buying another non-proprietary mutual fund 
on margin without incurring any fees, commissions or other costs for 
the transactions and without Edward Jones otherwise charging the 
respective customers any fees, commissions or other costs to effect the 
transactions.
    This exemption is subject to the conditions that
    <bullet> Edward Jones does not receive any sales commissions, Rule 
12b-1 fees, revenue sharing or any other compensation, directly or 
indirectly, from the mutual fund complexes in which investments are 
made, and Edward Jones does not charge or receive any compensation, 
fees, expenses or other costs as a result of its effecting transactions 
in the funds; and
    <bullet> Edward Jones, its affiliates, associates, related persons, 
management and employees have no affiliation with the mutual funds 
subject to the request, other than that Edward Jones will effect 
transactions in the funds for its customers.
    The foregoing exemption is subject to modification or revocation if 
at any time the Commission determines that such action is necessary or 
appropriate in furtherance of the purposes of the Exchange Act.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\1\
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    \1\ 17 CFR 200.30-3(62).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-7176 Filed 3-23-12; 8:45 am]
BILLING CODE 8011-01-P