�BEFORE THE STATE AUDITOR AND COMMISSIONER OF SECURITIES

OF THE STATE OF MONTANA

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In the matter of the amendment of ARM 6.10.126, pertaining to Unethical Practices by Broker-Dealers and Salesmen Defined, and the adoption of NEW RULE I pertaining to Filing Requirements for Transactional Exemption

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NOTICE OF DECISION ON PROPOSED RULE ACTION �

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TO: All Concerned Persons

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�1. On July 17, 2008, the State Auditor and Commissioner of Securities published MAR Notice No. 6-177 regarding a public hearing on the proposed amendment and adoption of the above-stated rules at page 1367 of the 2008 Montana Administrative Register, Issue No. 13. These proposed rules incorporated current department procedure for regulating persons utilizing certain designations fraudulently and for clarifying filing requirements for transactional exemptions.

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2. The department has decided to cancel the public hearing on the proposed amendment and adoption of rules that was scheduled for August 8, 2008, 10:00 a.m., at the State Auditor's Office, 840 Helena Ave., Helena, Montana. The hearing is canceled for the reasons stated in paragraphs three and four below.

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3. After publishing notice of hearing on the above-stated rules, the department found that amending ARM 6.10.126, Unethical Practices by Broker-Dealers and Salesmen Defined, is premature and inefficient because the department is revising the entire subchapter. Adopting NEW RULE I pertaining to Filing Requirements for Transactional Exemption is also premature and inefficient because the department is revising the entire subchapter.�

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4. Therefore, the department has decided not to amend ARM 6.10.126, nor adopt NEW RULE I as originally proposed. Instead the department is proposing to adopt new rules to incorporate these rules and revisions of the entire subchapter in a future notice.

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/s/ Janice S. VanRiper Janice S. VanRiper Deputy State Auditor

/s/ Christina L. Goe Christina L. Goe Rule Reviewer

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Certified to the Secretary of State July 21, 2008.