This is a letter from the staff of the SEC saying that it will not recommend enforcement action. A no-action letter is issued in response to a request by lawyers for the company, prepared because they are uncertain whether some proposed steps are in violation of the securities laws. The no-action letter is limited to the facts presented in the letter request. However, the SEC releases most no-action letters for publication, and lawyers often use them to support their own opinion to clients. As a matter of published policy, the SEC will not issue no-action letters on certain types of questions.

A no-action letter is a letter from the SEC (United States Securities and Exchage Commission) indicating that no civil or criminal proceedings will be instigated against an individual or entity engaging in a particular activity. A no-action letter is sent in response to a written request to the SEC for clarification when the legality of the activity is questioned.