No-Action Letter

Definition

An SEC letter indicating that no civil or criminal action will be taken against an individual engaging in a particular activity; sent in response to a written request for clarification when the legality of the activity in question is not well-established.

Use No-Action Letter in a sentence

You should try to make sure that you fully understand why you received the no-action letter and what you did wrong.

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The Board of Directors will authorize the purchase once we receive a No-Action Letter from the SEC for each member of the board.

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Even though my boss was concerned that the proposed stock swap was not legal, he was relieved to learn we would receive a no-action letter from the SEC and the deal could proceed.

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