No-Action Letter

Letter requested from the Securities and Exchange Commission wherein the Commission agrees to take neither civil nor criminal action with respect to the specific activity and circumstances. Limited Partnerships designed as Tax Shelters which are frequently venturing in uncharted legal territory, often seek no-action letters to clear novel marketing or financing techniques.

Administrative review letter by the Securities and Exchange Commission (SEC). In a no-action letter the agency declines to rule on the legality of a proposed activity, and will not undertake civil or criminal action if the activity takes place as proposed. SEC no-action letters generally are viewed favorably by those requesting comment because it means the agency will not oppose the activity unless the relevant facts change. These letter rulings are specific to each case, and are applicable only to the facts outlined.