2.

Hearings on new regulations or changes to existing regulations

should be open to the public.  All formal hearings by regulators

and/or any government sponsored (funded) advisory committees

concerning the issuance of new regulations (or changes to existing

regulations) should be open to the public.  Where such groups hold

private meetings that relate to pending regulatory proposals, a

report of the substance of the meeting should be made available to

the public.  Regulators should not take arbitrary regulatory action

against those who participate in such public proceedings.

3.

In considering whether rules, regulations, licensing requirements

or actions are necessary or appropriate, regulators should also

consider, in addition to the protection of investors, whether the

action will promote efficiency, competition and capital formation.

B.

Communicating and implementing new rules

1.

New rules and regulations that provide advice for market

participants should be made available to them and the public in a

timely and efficient manner.  Such changes should be made

available, in writing, by electronic media or other means of

distribution so that all market participants have reasonable access

to such material.

2.

Market participants should be given a reasonable period of time to

implement new regulations.  The effective date of a new regulation

should provide a reasonable period for market participants to take

the steps needed to implement the new regulation under the

circumstances.

C.

Interpretations of rules

1.

Regulators should establish a mechanism to respond to inquiries

on rules and regulations from market participants.  The titles and

official addresses of the relevant regulatory offices should be

provided.

2.

Interpretations and the grants or denials of regulatory relief or

exemptions should be made available to the public.  Such

interpretations, relief or exemptions should generally apply or

should be applied upon proper request, to substantially similar

licensed market participants and new products.  Information about

such interpretations, regulatory relief, or exemptions should be

made available to the public, through a letter or other means on a

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