SEC Division of Market Regulation no-action letter: Wachovia Securities

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON. D.C. 20549

DIVISION OF
MARKET REGULATION
April 30,2007
Jack P. Drogin, Esq.

Morgan Lewis & Bockius LLP

11 Pennsylvania Avenue, NW

Washington, DC 20004

Re: Request for Exemption from Rule lob-10(a) for Wachovia Securities Dear Mr. Drogin:
Based on the facts and representations set forth in your letter of April 25,2007, we find that it is appropriate in the public interest and consistent with the protection of investors to grant, and hereby grant, an exemption, pursuant to Rule lob-1 0(f) under the Securities Exchange Act of 1934 ("Exchange Act"), fiom the trade-by-trade confirmation delivery requirements of Rule 1 Ob- 1 0(a) so that Wachovia Securities, LLC ("WSLLC") and its affiliate, Wachovia Securities Financial Network, LLC ("WSFN), both registered broker-dealers, may send Program Clients (as defined in your letter), who have requested them, periodic statements not less often than quarterly, in lieu of trade-by-trade confirmations. The periodic statements will contain all of the information required by Rule lob-1 0 for transactions in securities effected by WSLLC and WSFN for Program Clients in their accounts during the applicable period. This exemption is subject to the following conditions:

1. WSLLC and WSFN will provide all Program Clients, at or prior to
   account opening, and at least annually thereafter offer to provide, a brochure describing the products, services, and fees of the Programs (as defined in your letter), in accordance with Rule 204-3 under the Investment Advisers Act of 1940.
2. WSLLC and WSFN will develop a form of written or electronic
   consent that will be prominent, clear and easily understandable for Program Clients who request not to receive trade-by-trade confirmations and, in lieu thereof, receive a periodic statement that contains the same information that would have been in the trade-by-trade confirmation for each transaction. New Program Clients will elect to receive a periodic statement in lieu of trade-by-trade confirmations by initialing a separate signature line specifically providing for such consent (or by executing a