Federal Register / Vol. 73, No. 199 / Tuesday, October 14, 2008 / Rules and Regulations 60627 

8As described below, these representations are to 

be filed with NFA. 

9 62 FR 47792, 47793 (September 11, 1997). 

Among other duties, the Commission authorized 

NFA to receive requests for confirmation of 

Regulation 30.10 relief on behalf of particular firms, 

to verify such firms’ fitness and compliance with 

the conditions of the appropriate Regulation 30.10 

Order and to grant exemptive relief from 

registration to qualifying firms. 

10See 57 FR 49644 (November 3, 1992) 

(permitted limited marketing of foreign futures and 

foreign option products to certain governmental and 

institutional customers located in the U.S.); 59 FR 

42156 (August 17, 1994) (expanding the relief set 

forth in the 1992 release to conduct directed 

towards ‘‘accredited investors’’, as defined in the 

Securities and Exchange Commission’s Regulation 

D issued pursuant to the Securities Act of 1933). 

Regulation 30.10 petition must 

represent in writing to the CFTC8 that: 

(a) Each firm for which relief is sought is 

registered, licensed or authorized, as 

appropriate, and is otherwise in good 

standing under the standards in place in 

Japan; such firm is engaged in business with 

customers in Japan as well as in the U.S.; and 

such firm and its principals and employees 

who engage in activities subject to Part 30 

would not be statutorily disqualified from 

registration under Section 8a(2) of the Act, 7 

U.S.C. 12a(2); 

(b) It will monitor firms to which relief is 

granted for compliance with the regulatory 

requirements for which substituted 

compliance is accepted and will promptly 

notify the Commission or NFA of any change 

in status of a firm that would affect its 

continued eligibility for the exemption 

granted hereunder, including the termination 

of its activities in the U.S.; 

(c) All transactions with respect to 

customers resident in the U.S. will be made 

on or subject to the regulations of TFX and 

the Commission will receive prompt notice 

of all material changes to the relevant laws 

in Japan, any regulations promulgated 

thereunder and TFX regulations; 

(d) Customers located in the U.S. will be 

provided no less stringent regulatory 

protection than Japanese customers under all 

relevant provisions of Japanese law; and 

(e) It will cooperate with the Commission 

with respect to any inquiries concerning any 

activity subject to regulation under the Part 

30 Regulations, including sharing the 

information specified in Appendix A on an 

‘‘as needed’’ basis and will use its best efforts 

to notify the Commission if it becomes aware 

of any information that in its judgment 

affects the financial or operational viability of 

a member firm doing business in the U.S. 

under the exemption granted by this Order. 

(2) Each firm seeking relief hereunder 

must represent in writing that it: 

(a) Is located outside the U.S., its territories 

and possessions and, where applicable, has 

subsidiaries or affiliates domiciled in the 

U.S. with a related business (e.g., banks and 

broker/dealer affiliates) along with a brief 

description of each subsidiary’s or affiliate’s 

identity and principal business in the U.S.; 

(b) Consents to jurisdiction in the U.S. 

under the Act by filing a valid and binding 

appointment of an agent in the U.S. for 

service of process in accordance with the 

requirements set forth in Regulation 30.5; 

(c) Agrees to provide access to its books 

and records related to transactions under Part 

30 required to be maintained under the 

applicable statutes and regulations in effect 

in Japan upon the request of any 

representative of the Commission or U.S. 

Department of Justice at the place in the U.S. 

designated by such representative, within 72 

hours, or such lesser period of time as 

specified by that representative as may be 

reasonable under the circumstances after 

notice of the request; 

(d) Has no principal or employee who 

solicits or accepts orders from customers 

located in the U.S. who would be 

disqualified under Section 8a(2) of the Act, 

7 U.S.C. 12a(2), from doing business in the 

U.S.; 

(e) Consents to participate in any NFA 

arbitration program that offers a procedure 

for resolving customer disputes on the papers 

where such disputes involve representations 

or activities with respect to transactions 

under Part 30, and consents to notify 

customers located in the U.S. of the 

availability of such a program; 

(f) Undertakes to comply with the 

applicable provisions of Japanese laws and 

TFX regulations that form the basis upon 

which this exemption from certain 

provisions of the Act and Regulations 

thereunder is granted. 

As set forth in the Commission’s 

September 11, 1997 Order delegating to 

NFA certain responsibilities, the written 

representations set forth in paragraph 

(2) shall be filed with NFA.9 Each firm 

seeking relief hereunder has an ongoing 

obligation to notify NFA should there be 

a material change to any of the 

representations required in the firm’s 

application for relief. 

The Commission also confirms that 

TFX members that receive confirmation 

of relief set forth herein may engage in 

limited marketing conduct with respect 

to certain qualified customers located in 

the U.S. from a non-permanent location 

in the U.S., subject to the terms and 

conditions set forth in prior 

Commission Orders.10 The Commission 

notes that any firm and their employees 

or other representatives which engage in 

marketing conduct pursuant to this 

relief are deemed to have consented to 

the Commission’s jurisdiction over such 

marketing activities by their filing of a 

valid and binding appointment of an 

agent in the U.S. for service of process. 

This Order will become effective as to 

any designated TFX firm the later of the 

date of publication of the Order in the 

Federal Register or the filing of the 

consents set forth in paragraphs (2)(a)– 

(f). Upon filing of the notice required 

under paragraph (1)(b) as to any such 

firm, the relief granted by this Order 

may be suspended immediately as to 

that firm. That suspension will remain 

in effect pending further notice by the 

Commission, or the Commission’s 

designee, to the firm and TFX. 

This Order is issued pursuant to 

Regulation 30.10 based on the 

representations made and supporting 

material provided to the Commission 

and the recommendation of the staff, 

and is made effective as to any firm 

granted relief hereunder based upon the 

filings and representations of such firms 

required hereunder. Any material 

changes or omissions in the facts and 

circumstances pursuant to which this 

Order is granted might require the 

Commission to reconsider its finding 

that the standards for relief set forth in 

Regulation 30.10 and, in particular, 

Appendix A, have been met. Further, if 

experience demonstrates that the 

continued effectiveness of this Order in 

general, or with respect to a particular 

firm, would be contrary to public policy 

or the public interest, or that the 

systems in place for the exchange of 

information or other circumstances do 

not warrant continuation of the 

exemptive relief granted herein, the 

Commission may condition, modify, 

suspend, terminate, withhold as to a 

specific firm, or otherwise restrict the 

exemptive relief granted in this Order, 

as appropriate, on its own motion. 

The Commission will continue to 

monitor the implementation of its 

program to exempt firms located in 

jurisdictions generally deemed to have a 

comparable regulatory program from the 

application of certain of the foreign 

futures and option regulations and will 

make necessary adjustments if 

appropriate. 

Dated: October 8, 2008. 

By the Commission. 

David Stawick, 

Secretary of the Commission. 

[FR Doc. E8–24315 Filed 10–10–08; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 801 

[TD 9426] 

RIN 1545–BE45 

Balanced System for Measuring 

Organizational and Employee 

Performance Within the Internal 

Revenue Service 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 


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60628 Federal Register / Vol. 73, No. 199 / Tuesday, October 14, 2008 / Rules and Regulations 

SUMMARY: This document contains final 

regulations relating to the modification 

of regulations governing the IRS 

Balanced System for Measuring 

Organizational and Employee 

Performance. These regulations affect 

internal operations of the IRS and the 

systems that the agency employs to 

evaluate the performance of 

organizations within the IRS and 

individuals employed by the IRS. 

DATES: Effective date. These regulations 

are effective on October 14, 2008. 

Applicability date. For dates of 

applicability, see § 801.8. 

FOR FURTHER INFORMATION CONTACT: Neil 

Worden, (202) 927–0900. 

SUPPLEMENTARY INFORMATION: 

Background 

On October 17, 2005, the IRS 

published in the Federal Register 

proposed regulations (REG–114444–05) 

at 70 FR 60256 and final and temporary 

regulations (TD 9227) at 70 FR 60214 

amending 26 CFR part 801. One written 

comment was received. No public 

hearing was requested. This document 

adopts, without modification, the 

proposed regulations as final 

regulations. 

Summary of Comments 

The commentator suggested that 

modification of the regulation was not 

needed. The commentator further 

suggested that the Quantity measure 

‘‘number of cases closed’’ should never 

be used to evaluate IRS employees or 

suggest goals. The amendment of Part 

801 retains the absolute prohibition on 

the use of quantity data to evaluate nonsupervisory employees who exercise 

judgment with respect to tax 

enforcement results. The amendment 

allows communicating the quantity 

goals of an organizational unit with 

employees, including quantity 

expectations, such as the average 

number of case closures needed to meet 

the unit’s goal. These communications 

must recognize that the facts and 

circumstances of each case will affect an 

employee’s actual closures, and that the 

employee is not being given a quota 

which must be met. Accordingly, the 

commentator’s suggestion was not 

adopted. 

In addition, the inclusion of some 

outcome-neutral production data as 

examples of quantity measures (for 

example, cycle time and number or 

percentage of overage cases) (§ 801.6(c)) 

does not preclude an organizational 

unit’s use of this or other outcomeneutral production data as quality 

measures. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that the 

section 553(b) of the Administrative 

Procedure Act (5 U.S.C. chapter 5) does 

not apply to these regulations, and 

because the regulation does not impose 

a collection of information on small 

entities, the Regulatory Flexibility Act 

(5 U.S.C. chapter 6) does not apply. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, the notice of 

proposed rulemaking preceding these 

regulations was submitted to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Drafting Information 

The principal author of these 

regulations is Karen F. Keller, Office of 

Associate Chief Counsel (General Legal 

Services). However, other personnel 

from the IRS participated in their 

development. 

List of Subjects in 26 CFR part 801 

Organization and functions 

(Government agencies), Federal 

employees. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR Part 801 is 

amended as follows: 

■ Paragraph 1. The authority citation 

for Part 801 continues to read in part as 

follows: 

Authority: 5 U.S.C. 9501 * * * 

PART 801—BALANCED SYSTEM FOR 

MEASURING ORGANIZATIONAL AND 

EMPLOYEE PERFORMANCE WITHIN 

THE INTERNAL REVENUE SERVICE 

§§ 801.1 through 801.7 [Removed] 

■ Par. 2. The center heading and 

§§ 801.1, 801.2, 801.3, 801.4, 801.5, 

801.6, and 801.7 are removed. 

§§ 801.1T through 801.8T [Redesignated 

as §§ 801.1 through 801.8] 

■ Par. 3. The center heading preceding 

§ 801.1T is removed. 

■ Par. 4. Sections 801.1T, 801.2T, 

801.3T, 801.4T, 801.5T, 801.6T, 801.7T, 

and 801.8T are redesignated as §§ 801.1, 

801.2, 801.3, 801.4, 801.5, 801.6, 801.7, 

and 801.8 and the language ‘‘T’’ 

following the section number and 

‘‘(temporary)’’ is removed from each 

section heading, respectively. 

§ 801.1 [Amended] 

■ Par. 5. Newly designated § 801.1(a) is 

amended by removing the language 

‘‘(Pub. L. 105–106, 112 Stat. 685, 715– 

716, 722)’’ and adding the language 

‘‘(Pub. L. 105–106, 112 Stat. 685, 715– 

716, 722)’’ in its place. 

§ 801.2 [Amended] 

■ Par. 6. Newly designated § 801.2 is 

amended by removing the language 

‘‘Pub. L. 104–106, 110 Stat. 186, 679); 

the Government Performance and 

Results Act of 1993 (Pub. L. 103–62, 107 

Stat. 285); and the Chief Financial 

Officers Act of 1990 (Pub. L. 101–576, 

108 Stat. 2838)’’ and adding the 

language ‘‘(Pub. L. 104–106, 110 Stat. 

186, 679); the Government Performance 

and Results Act of 1993 (Pub. L. 103– 

62, 107 Stat. 285); and the Chief 

Financial Officers Act of 1990 (Pub. L. 

101–576, 108 Stat. 2838)’’ in its place. 

§ 801.3 [Amended] 

■ Par. 7. Newly designated § 801.3(e)(1) 

and (e)(3) is amended by removing the 

language ‘‘§ 801.6T’’ in each location 

and adding the language ‘‘801.6’’ in its 

place. 

§ 801.7 [Amended] 

■ Par. 8. Newly designated § 801.7(a) 

introductory text is amended by 

removing the language ‘‘§ 801.3T’’ and 

adding the language ‘‘§ 801.3’’ in its 

place. 

■ Par. 9. New designated § 801.8 is 

revised to read as follows: 

§ 801.8 Effective/applicability dates. 

The provisions of §§ 801.1 through 

801.7 apply on or after October 17, 

2005. 

Approved: October 7, 2008. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E8–24335 Filed 10–10–08; 8:45 am] 

BILLING CODE 4830–01–P 


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