27856 Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Rules and Regulations

1 44 FR 66466. Since its promulgation, the Rule

has been amended five times to include new

product categories—central air conditioners (52 FR

46888, Dec. 10, 1987), fluorescent lamp ballasts (54

FR 1182, Jan. 12, 1989), certain plumbing products

(58 FR 54955, Oct. 25, 1993), certain lamp products

(59 FR 25176, May 13, 1994), and pool heaters and

certain residential water heater types (59 FR 49556,

Sept. 28, 1994). Obligations under the Rule

concerning fluorescent lamp ballasts, lighting

products, plumbing products and pool heaters are

not affected by the cost figures in this notice.

2Sections 305.11(a)(5)(i)(H)(2) and (3) of the Rule

(16 CFR 305.11(a)(5)(i)(H)(2) and (3)) require that

labels for refrigerators, refrigerator-freezers, clothes

washers, dishwashers, water heaters, and room air

conditioners contain a secondary energy usage

disclosure in terms of an estimated annual

operating cost (labels for clothes washers and

dishwashers will show two such secondary

disclosures—one based on operation with water

heated by natural gas, and one on operation with

water heated by electricity). The labels also must

disclose, below this secondary estimated annual

operating cost, the fact that the estimated annual

operating cost is based on the appropriate DOE

energy cost figure, and must identify the year in

which the cost figure was published.

addressed by this AD; and, if you have not

eliminated the unsafe condition, specific

actions you propose to address it.

(f) Where can I get information about any

already-approved alternative methods of

compliance? Contact Mike Kiesov, Aerospace

Engineer, FAA, Small Airplane Directorate,

901 Locust, Room 301, Kansas City, Missouri

64106; telephone: (816) 329–4121; facsimile:

(816) 329–4091.

(g) What if I need to fly the sailplane to

another location to comply with this AD? The

FAA can issue a special flight permit under

sections 21.197 and 21.199 of the Federal

Aviation Regulations (14 CFR 21.197 and

21.199) to operate your sailplane to a location

where you can accomplish the requirements

of this AD.

(h) Are any service bulletins incorporated

into this AD by reference? Actions required

by this AD must be done in accordance with

Rolladen Schneider Technical Bulletin No.

3051, Technical Bulletin No. 4043, or

Technical Bulletin No. 6037, all dated

September 14, 1999. The Director of the

Federal Register approved this incorporation

by reference under 5 U.S.C. 552(a) and 1 CFR

part 51. You can get copies from RolladenSchneider Flugzeugbau GmbH, Muhlstrasse

10, D–63329 Egelsbach, Germany. You can

look at copies at the FAA, Central Region,

Office of the Regional Counsel, 901 Locust,

Room 506, Kansas City, Missouri, or at the

Office of the Federal Register, 800 North

Capitol Street, NW., suite 700, Washington,

DC.

(i) When does this amendment become

effective? This amendment becomes effective

on July 13, 2001.

Note 2: The subject of this AD is addressed

in German AD Numbers 2000–076, 2000–

082, and 2000–085, all dated March 9, 2000.

Issued in Kansas City, Missouri, on May

14, 2001.

Melvin D. Taylor,

Acting Manager, Small Airplane Directorate,

Aircraft Certification Service.

[FR Doc. 01–12523 Filed 5–18–01; 8:45 am]

BILLING CODE 4910–13–U

FEDERAL TRADE COMMISSION

16 CFR Part 305

Rule Concerning Disclosures

Regarding Energy Consumption and

Water Use of Certain Home Appliances

and Other Products Required Under

the Energy Policy and Conservation

Act (‘‘Appliance Labeling Rule’’)

AGENCY: Federal Trade Commission.

ACTION: Final rule.

SUMMARY: The Federal Trade

Commission (‘‘Commission’’) revises

Table 1 in § 305.9 of the Commission’s

Appliance Labeling Rule (‘‘Rule’’) to

incorporate the latest figures for average

unit energy costs as published by the

Department of Energy (‘‘DOE’’) in the

Federal Register on March 8, 2001.

Table 1 sets forth the representative

average unit energy costs for five

residential energy sources, which the

Commission revises periodically on the

basis of undated information provided

by DOE. The Commission is also making

two minor technical corrections to the

Rule.

DATES: The amendments published in

this document are effective May 21,

2001. The mandatory dates for using

these revised DOE cost figures in

connection with the Appliance Labeling

Rule are detailed in the SUPPLEMENTARY

INFORMATION section below.

FOR FURTHER INFORMATION CONTACT:

Hampton Newsome, Attorney, 202–326–

2889, Division of Enforcement, Bureau

of Consumer Protection, Federal Trade

Commission, Washington, DC 20580; Email:hnewsome@ftc.gov.

SUPPLEMENTARY INFORMATION: On

November 19, 1979, the Commission

issued a final rule in response to a

directive in section 324 of the Energy

Policy and Conservation Act (‘‘EPCA’’),

42 U.S.C. 6201.1 The Rule requires the

disclosure of energy efficiency,

consumption, or cost information on

labels and in retail sales catalogs for

eight categories of appliances, and

mandates that the energy costs,

consumption, or efficiency ratings be

based on standardized test procedures

developed by DOE. The cost

information obtained by following the

test procedures is derived by using the

representative average unit energy costs

provided by DOE. Table 1 in section

305.9(a) of the Rule sets forth the

representative average unit energy costs

to be used for all cost-related

requirements of the Rule. As stated in

section 305.9(b), the Table is to be

revised periodically on the basis of

updated information provided by DOE.

I. Representative Average Unit Energy

Costs

On March 8, 2001, DOE published the

most recent figures for representative

average unit energy costs (66 FR 13917).

These energy cost figures are for

manufacturers to use, in accordance

with the guidelines that appear below,

to calculate the required secondary

annual operating cost figures at the

bottom of required EnergyGuides for

refrigerators, refrigerator-freezers,

freezers, dishwashers, clothes washers,

water heaters, and room air

conditioners. The energy cost figures

also are for manufacturers of central air

conditions and heat pumps to use, also

in accordance with the below

guidelines, to calculate annual operating

cost for required fact sheets and in

approved industry directories listing

these products.

The DOE cost figures are not

necessary for making data submissions

to the Commission. The required energy

use information that manufacturers of

refrigerators, refrigerator-freezers,

freezers, clothes washers, dishwashers,

and water heaters must submit under

section 305.8 of the Rule is no longer

operating cost; it is now energy

consumption (kilo Watt-hour use per

year for electricity, therms per year for

natural gas, or gallons per year for

propane and oil).

Accordingly, Table 1 is revised to

reflect these latest cost figures, as set

forth below. The current and future

obligations of manufacturers with

respect to the use of DOE’s cost figures

are as follows:

A. For Labeling of Refrigerators,

Refrigerator-Freezers, Freezers, Clothes

Washers, Dishwashers, Water Heaters,

and Room Air Conditioners 2

Manufacturers of refrigerators,

refrigerator-freezers, freezers, clothes

washers, dishwashers, water heaters,

and room air conditioners must use the

National Average Representative Unit

Costs published today on labels for their

products only after the Commission

publishes new ranges of comparability

for those products that are based on

today’s cost figures. In the meantime,

they must continue to use past DOE cost

figures as follows:

1. Refrigerators, Refrigerator-Freezers,

and Freezers

Manufacturers of refrigerators,

refrigerator-freezers, and freezers

covered by Appendices A1, A2, A3, A4,

Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Rules and Regulations 27857

3The current (1998) ranges for refrigerators,

refrigerator-freezers, and freezers covered by

Appendices, A1, A2, A3, A4, A5, A6, A8, B1, B2,

and B3 were published on December 2, 1998 (63 FR

66428). On December 20, 1999 (64 FR 71019) and

October 23, 2000 (65 FR 63201), the Commission

announced that the 1998 ranges for these products

would continue to remain in effect.

4The current (2000) ranges for refrigeratorfreezers covered by Appendix A7 were published

on October 23, 2000 (65 FR 63201).

5The current (1995) ranges for room air

conditioners were published on November 13, 1995

(60 FR 56945). On September 16, 1996 (61 FR

48620), August 25, 1997 (62 FR 44890), August 28,

1998 (63 FR 45941), December 20, 1999 (64 FR

71019), and September 1, 2000 (65 FR 53163), the

Commission announced that the 1995 ranges for

room air conditioners would continue to remain in

effect.

6The 1994 DOE cost figures were published by

DOE on December 29, 1993 (58 FR 68901), and by

the Commission on February 8, 1994 (59 FR 5699).

The current (1994) ranges of comparability for

storage-type water heaters were published on

September 23, 1994 (59 FR 48796). On August 21,

1995 (60 FR 43367), September 16, 1996 (61 FR

48620), August 25, 1997 (62 FR 44890), August 28,

1998 (63 FR 45941), December 20, 1999 (64 FR

71019), and September 1, 2000 (65 FR 53163), the

Commission announced that the 1994 ranges for

storage-type waters heaters would continue to

remain in effect.

7The current (2000) ranges of comparability for

heat pump water heaters were published on

September 1, 2000 (65 FR 53163).

8The current ranges for gas-fired instantaneous

water heaters were published on December 20, 1999

(64 FR 71019). On September 1, 2000 (65 FR

53165), the Commission announced that the 1999

ranges for gas-fired instantaneous water heaters

would continue to remain in effect.

9The current ranges for standard-size

dishwashers were published on August 25, 1997 (62

FR 44890). On August 28, 1998 (63 FR 45941),

December 20, 1999 (64 FR 71019), and September

1, 2000 (65 FR 53165), the Commission announced

that the 1997 ranges for standard-size dishwashers

would continue to remain in effect.

A5, A6, B1, B2, and B3 of 16 CFR part

305 must continue to derive the

operating cost disclosures on labels by

using the 1998 National Average

Representative Unit Costs (8.42 cents

per kiloWatt-hour for electricity)

published by DOE on December 8, 1997

(62 FR 64574), and by the Commission

on December 29, 1997 (62 FR 67560),

and that were in effect when the current

(1998) ranges of comparability for these

products were published.3

Manufacturers of refrigerator-freezers

covered by Appendix A7 of 16 CFR Part

305 must continue to derive the

operating cost disclosures on labels by

using the 2000 National Average

Representative Unit Costs (8.03 cents

per kiloWatt-hour for electricity) that

were published by DOE on February 7,

2000 (65 FR 5860), and by the

Commission on April 17, 2000 (65 FR

20352), and that were in effect when the

current (2000) ranges of comparability

for these products were published.4

Manufacturers must continue to use the

foregoing DOE cost figures until the

Commission publishes new ranges of

comparability. In the notice announcing

the new ranges, the Commission also

will announce that operating cost

disclosures must be based on the DOE

cost figure for electricity in effect at that

time.

2. Room Air Conditioners

Manufacturers of room air

conditioners must continue to derive

the operating cost disclosures on labels

by using the 1995 National Average

Representative Unit Costs for electricity

(8.67 cents per kiloWatt-hour) that were

published by DOE on January 5, 1995

(60 FR 1773), and by the Commission on

February 17, 1995 (60 FR 9296), and

that were in effect when the current

(1995) ranges of comparability for these

products were published.5

Manufacturers of room air conditioners

must continue to use the 1995 DOE cost

figures to calculate the operating cost

disclosure disclosed on labels until the

Commission publishes new ranges of

comparability for room air conditioners

based on future annual submissions of

data. In the notice announcing the new

ranges, the Commission also will

announce that operating cost

disclosures must be based on the DOE

cost figure for electricity in effect at that

time.

3. Storage-Type Water Heaters

Manufacturers of storage-type water

heaters must continue to use the 1994

DOE cost figures (8.41 cents per

kiloWatt-hour for electricity, 60.4 cents

per therm for natural gas, $1.05 per

gallon for No. 2 heating oil, and 98.3

cents per gallon for propane) in

determining the operating cost

disclosures on the labels on their

products. This is because the 1994 DOE

cost figures were in effect when the

1994 ranges of comparability for storagetype water heaters were published, and

those 1994 ranges are still in effect for

those products.6 Manufacturers of

storage-type water heaters must

continue to use the 1994 cost figures to

calculate the estimated annual operating

cost figures on their labels until the

Commission publishes new ranges of

comparability for storage-type water

heaters. In the notice announcing the

new ranges, the Commission also will

announce that operating cost

disclosures must be based on the DOE

cost figures for relevant energy types in

effect at that time.

4. Heat Pump Water Heaters

Manufacturers of heat pump water

heaters must continue to derive the

operating cost disclosures on labels by

using the 2000 National Average

Representative Unit Costs for electricity

(8.03 cents per kiloWatt-hour) that were

published by DOE on February 7, 2000

(65 FR 5860), and by the Commission on

April 17, 2000 (65 FR 20352), and that

were in effect when the current (2000)

ranges of comparability for these

products were published.7

Manufacturers of heat pump water

heaters must continue to use the 2000

DOE cost figures to calculate the

operating cost disclosure on labels until

the Commission publishes new ranges

of comparability for heat pump water

heaters based on future annual

submissions of data. In the notice

announcing the new ranges, the

Commission also will announce that

operating cost disclosures must be based

on the DOE cost figures for electricity in

effect at that time.

5. Gas-Fired Instantaneous Water

Heaters

Manufacturers of gas-fired

instantaneous water heaters must

continue to base the required secondary

operating cost disclosures on labels on

the 1999 National Average

Representative Unit Cost for natural gas

(68.8 cents per therm) and propane (77

cents per therm) that were published by

DOE on January 5, 1999 (64 FR 487),

and by the Commission on February 17,

1999 (64 FR 7783), and that were in

effect when the 1999 ranges of

comparability for these products were

published.8 Manufacturers must

continue to use the 1999 DOE cost

figures to calculate the operating cost

disclosure on labels until the

Commission publishes new ranges of

comparability for gas-fired

instantaneous water heaters. In the

notice announcing the new ranges, the

Commission also will announce that

operating cost disclosures must be based

on the DOE cost figures for the relevant

energy types in effect at that time.

6. Standard-Size Dishwashers

Manufacturers of standard-size

dishwashers must continue to base the

required secondary operating cost

disclosures on labels on the 1997

National Average Representative Unit

Costs for electricity (8.31 cents per

kiloWatt-hour) and natural gas (61.2

cents per therm) that were published by

DOE on November 18, 1996 (61 FR

58679), and by the Commission on

February 5, 1997 (62 FR 5316), and that

were in effect when the 1997 ranges of

comparability for these products were

published.9 Manufacturers of standardsize dishwashers must continue to use

the 1997 DOE cost figures to calculate

27858 Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Rules and Regulations

10The current (2000) ranges of comparability for

clothes washers were published on May 11, 2000

(65 FR 30351). on April 16, 2001 (66 FR 19389), the

Commission announced that the 2000 ranges for

clothes washers would continue to remain in effect.

The current (2000) ranges of comparability for

compact-size dishwashers were published on

September 1, 2000 (65 FR 53165).

the operating cost disclosures on labels

until the Commission publishes new

ranges of comparability for standardsize dishwashers based on future annual

submissions of data. In the notice

announcing the new ranges, the

Commission also will announce that

operating cost disclosures must be based

on the DOE cost figure for the relevant

energy types in effect at that time.

7. Compact-Size Dishwashers and

Clothes Washers

Manufacturers of compact-size

dishwashers and clothes washers must

continue to derive the operating cost

disclosures on labels by using the 2000

National Average Representative Unit

Costs for electricity (8.03 cents per kilo

Watt-hour) and natural gas (68.8 cents

per therm) that were published by DOE

on February 7, 2000 (65 FR 5860), and

by the Commission on April 17, 2000

(65 FR 20352), and that were in effect

when the current (2000) ranges of

comparability for these products were

published.10 Manufacturers of compact

dishwashers and clothes washers must

continue to use the 2000 DOE cost

figures to calculate the operating cost

disclosures on labels until the

Commission publishes new ranges of

comparability for compact-size

dishwashers and clothes washers based

on future annual submissions of data. In

the notice announcing the new ranges,

the Commission also will announce that

operating cost disclosures must be based

on the DOE cost figures for the relevant

energy types in effect at that time.

B. For Operating Cost Information

Relating to Central Air Conditioners and

Heat Pumps Disclosed on Fact Sheets

and in Industry Directories

In the 2001 notice announcing

whether there will be new ranges of

comparability for central air

conditioners and heat pumps, the

Commission also will announce that

operating cost disclosures for these

products on fact sheets and in industry

directories must be based on the 2001

DOE cost figure for electricity beginning

on the effective date of that notice.

C. For Operating Cost Representation

Respecting Products Covered by EPCA

but Not By the Commission’s Rule

Manufacturers of products covered by

section 323(c) of EPCA, 42 U.S.C.

6293(c), but not by the Appliance

Labeling Rule (clothes dryers, television

sets, kitchen ranges and ovens, and

space heaters) must use the 2001 DOE

energy costs in all operating cost

representations beginning August 20,

2001.

II. Minor, Technical Corrections to the

Rule

The Commission is amending two

sections of the Rule that contain

obsolete references to DOE’s appliance

testing requirements found in 10 CFR

Part 430 (‘‘DOE’s Rule’’). The current

Commission Rule identifies 10 CFR

430.22 as the citation for DOE’s test

procedures covering a variety of

appliances (see 16 CFR 305.5(a)). The

correct reference is to section 430.23 of

DOE’s Rule. Similarly, the current

Commission Rule identifies 10 CFR

430.23 as the citation for DOE’s

sampling procedures (see 16 CFR

305.6(a)). The correct reference is to

section 430.24 of DOE’s Rule.

III. Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act relating to a Regulatory

Flexibility Act analysis (5 U.S.C. 603–

604) are not applicable to this

proceeding because the amendments do

not impose any new obligations on

entities regulated by the Appliance

Labeling Rule. Thus, the amendments

will not have a ‘‘significant economic

impact on a substantial number of small

entities’’ (5 U.S.C. 605). The

Commission has concluded, therefore,

that a regulatory flexibility analysis is

not necessary, and certifies, under

Section 605 of the Regulatory Flexibility

Act (5 U.S.C. 605(b)), that the

amendments announced today will not

have a significant economic impact on

a substantial number of small entities.

List of Subjects in 16 CFR Part 305

Advertising, Energy conservation,

Household appliances, Labeling,

Reporting and recordkeeping

requirements.

PART 305—[AMENDED]

Accordingly, 16 CFR part 305 is

amended as follows:

1. The authority citation for part 305

continues to read:

Authority: 42 U.S.C. 6294.

2. Section 305.5(a) is revised to read

as follows:

§ 305.5 Determinations of estimated

annual energy consumption, estimated

annual operating cost, and energy

efficiency rating, and of water use rate.

(a) Procedures for determining the

estimated annual energy consumption,

the estimated annual operating costs,

the energy efficiency ratings and the

efficacy factors of covered products are

those found in 10 CFR part 430, subpart

B, in the following sections:

(1) Refrigerators and refrigerator-freezers

§ 430.23(a).

(2) Freezers—§ 430.23(b).

(3) Dishwashers—§ 430.23(c).

(4) Water heaters—§ 430.23(e).

(5) Room air conditioners—§ 430.23(f).

(6) Clothes washers—§ 430.23(j).

(7) Central air conditioners and heat

pumps—§ 430.23(m).

(8) Furnaces—§ 430.23(n).

(9) Pool Heaters—§ 430.23(p)

(10) Fluorescent lamp ballasts—

§ 430.23(q).

* * * * *

3. Section 305.6(a) is revised to read

as follows:

§ 305.6 Sampling.

(a) For any covered product (except

general service flouroscent lamps,

medium base compact florescent lamps,

and general service incandescent lamps,

including incandescent reflector lamps),

any representation with respect to or

based upon a measure or measures of

energy consumption incorporated into

§ 305.5 shall be based upon the

sampling procedures set forth in

§ 430.24 of 10 CFR part 430, subpart B.

* * * * *

4. Section 305.9(a) is revised to read

as follows:

§ 305.9 Representative average unit

energy costs.

(a) Table 1, to this paragraph contains

the representative unit energy costs to

be utilized for all requirements of this

part.

Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Rules and Regulations 27859

1Commission rules referred to herein are found

at 17 CFR Ch. I (2000). 2 52 FR 28990, 29001 (August 5, 1987).

TABLE 1.—REPRESENTATIVE AVERAGE UNIT COSTS OF ENERGY FOR FIVE RESIDENTIAL ENERGY SOURCES (2001)

Type of energy In commonly used terms As required by DOE test procedure Dollars per

million Btu 1

Electricity ................................................. 8.29¢/kWh 2 3 ........................................... $0.0829/kWh ........................................... $24.30

Natural Gas ............................................. 83.7¢/therm 4 or $8.63/MCF 5 6 ................ 0.00000837/Btu ....................................... 8.37

No. 2 heating oil ...................................... $1.23/gallon 7 ........................................... 0.00000886/Btu ....................................... 8.86

Propane ................................................... $1.03/gallon 8 ........................................... 0.00001128/Btu ....................................... 11.28

Kerosene ................................................. $1.27/gallon 9 ........................................... 0.00000941/Btu ....................................... 9.41

1Btu stands for British thermal unit.

2 kWh stands for kiloWatt hour.

3 1 kWh = 3,412 Btu.

4 therm = 100,000 Btu. Natural gas prices include taxes.

5 MCF stands for 1,000 cubic feet.

6For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,031 Btu.

7For the purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.

8For the purposes of this table, 1 gallon of liquid propane has an energy equivalence of 91,333 Btu.

9For the purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.

* * * * *

By direction of the Commission.

Donald S. Clark,

Secretary,

[FR Doc. 01–12676 Filed 5–18–01; 8:45 am]

BILLING CODE 6750–01–M

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 30

Foreign Futures and Options

Transactions

AGENCY: Commodity Futures Trading

Commission.

ACTION: Order.

SUMMARY: The Commodity Futures

Trading Commission (‘‘Commission’’ or

‘‘CFTC’’) is granting an exemption to

firms designated by the Winnipeg

Commodity Exchange (‘‘WCE’’) from the

application of certain of the

Commission’s foreign futures and

option rules based on substituted

compliance with certain comparable

regulatory and self-regulatory

requirements of a foreign regulatory

authority consistent with conditions

specified by the Commission, as set

forth herein. This Order is issued

pursuant to Commission Rule 30.10,

which permits specified persons to file

a petition with the Commission for

exemption from the application of

certain of the rules set forth in Part 30

and authorizes the Commission to grant

such an exemption if such action would

not be otherwise contrary to the public

interest or to the purposes of the

provision from which exemption is

sought.

EFFECTIVE DATE: May 21, 2001.

FOR FURTHER INFORMATION CONTACT:

Lawrence B. Patent, Esq., Associate

Chief Counsel, Susan A. Elliott, Esq.,

Staff Attorney, or Andrew V. Chapin,

Esq., Staff Attorney, Division of Trading

and Markets, Commodity Futures

Trading Commission, 1155 21st Street,

NW., Washington, DC 20581.

Telephone: (202) 418–5430.

SUPPLEMENTARY INFORMATION: The

Commission has issued the following

Order:

Order Under CFTC Rule 30.10 Exempting

Firms Designated by the Winnipeg

Commodity Exchange From the Application

of Certain of the Foreign Futures and Option

Rules the Later of the Date of Publication of

the Order Herein in the Federal Register or

After Filing of Consents by Such Firms and

the Regulatory or Self-Regulatory

Organization, as Appropriate, to the Terms

and Conditions of the Order Herein.

Commission rules governing the offer

and sale of commodity futures and

option contracts traded on or subject to

the rules of a foreign board of trade to

customers located in the U.S. are

contained in Part 30 of the

Commission’s rules.1 These rules

include requirements for intermediaries

with respect to registration, disclosure,

capital adequacy, protection of customer

funds, recordkeeping and reporting, and

sales practice and compliance

procedures, that are generally

comparable to those applicable to

transactions on U.S. markets.

In formulating a regulatory program to

govern the offer and sale of foreign

futures and option products to

customers located in the U.S., the

Commission, among other things,

considered the desirability of

ameliorating the potential

extraterritorial impact of such a program

and avoiding duplicative regulation of

firms engaged in international business.

Based upon these considerations, the

Commission determined to permit

persons located outside the U.S. and

subject to a comparable regulatory

structure in the jurisdiction in which

they were located to seek an exemption

from certain of the requirements under

Part 30 of the Commission’s rules based

upon substituted compliance with the

comparable regulatory requirements of

the foreign jurisdiction.

Appendix A to Part 30, ‘‘Interpretative

Statement With Respect to the

Commission’s Exemptive Authority

Under 30.10 of Its Rules’ (‘‘Appendix

A’’), generally sets forth the elements

the Commission will evaluate in

determining whether a particular

regulatory program may be found to be

comparable for purposes of exemptive

relief pursuant to Rule 30.10.2 These

elements include: (1) Registration,

authorization or other form of licensing,

fitness review or qualification of

persons through whom customer orders

are solicited and accepted; (2) minimum

financial requirements for those persons

who accept customer funds; (3)

protection of customer funds from

misapplication; (4) recordkeeping and

reporting requirements; (5) sales

practice standards; (6) procedures to

audit for compliance with, and to take

action against those persons who

violate, the requirements of the

program; and (7) information sharing

arrangements between the Commission

and the appropriate governmental and/

or self-regulatory organization to ensure

Commission access on an ‘‘as needed’’

basis to information essential to

maintaining standards of customer and

market protection within the U.S.

Moreover, the Commission

specifically stated in adopting Rule

30.10 that no exemption of a general

nature would be granted unless the

persons to whom the exemption is to be

applied: (1) consensually submit to

jurisdiction in the U.S. by designating

an agent for service of process in the