Sometimes the Securities and Exchange Commission provides better guidance on complying with its regulations by saying what it’s not concerned with.
SEC “no-action letters” sent to answer public company queries about whether the agency would view a particular product, service, or action as a violation of its rules can be crucial to interpreting rulemaking and steering clear of enforcement actions. Recent letters, for example, have created a new breed of venture capital firm, given investment banks the ability to market securities offerings online, and provided regulatory compliance relief for broker-dealers.
