<SEC-DOCUMENT>0000950123-11-097064.txt : 20120217
<SEC-HEADER>0000950123-11-097064.hdr.sgml : 20120217
<ACCEPTANCE-DATETIME>20111109163111
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ACCESSION NUMBER:		0000950123-11-097064
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20111109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OPPENHEIMER HOLDINGS INC
		CENTRAL INDEX KEY:			0000791963
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				980080034
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1110, P.O. BOX 2015
		STREET 2:		20 EGLINTON AVE. WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M4R 1K8
		BUSINESS PHONE:		(416)322-1515

	MAIL ADDRESS:	
		STREET 1:		PO BOX 2015 SUITE 1110
		STREET 2:		20 EGLINTON AVENUE WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M4R 1K8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FAHNESTOCK VINER HOLDINGS INC
		DATE OF NAME CHANGE:	19950725

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VINER E A HOLDINGS LTD
		DATE OF NAME CHANGE:	19880622

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDALE INVESTMENTS LTD
		DATE OF NAME CHANGE:	19861030
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">November&nbsp;9, 2011
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington D.C. 20549<BR>
Attention: Kevin Woody, Accounting Branch Chief

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Re:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Oppenheimer Holdings Inc. <br>
Form&nbsp;10-K<br>
Filed March&nbsp;2, 2011<br>
File No.&nbsp;001-12043</B></TD>
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Sirs:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Oppenheimer Holdings Inc. (the &#147;Company&#148;) is in receipt of a comment letter from the United States
Securities and Exchange Commission (the &#147;Commission&#148; or the &#147;SEC&#148;) dated September&nbsp;22, 2011. The
Company&#146;s responses below follow the numbered points in the comment letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Form&nbsp;10-K for the year ended December&nbsp;31, 2010</I></U><BR>
<U><I>Item&nbsp;8. Financial Statements and Supplementary Data</I></U><BR>
<U><I>Notes to Consolidated Financial Statements</I></U><BR>
<U><I>1. Summary of Significant accounting policies</I></U><BR>
<U><I>Basis of Presentation, page 75</I></U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>1. We have considered your response to our prior comment one. Given the apparent quantitative
significance of the over-accrual of compensation expense to net earnings for the year ended
December&nbsp;31, 2009 and several quarterly periods, we are unable to agree with your conclusions
regarding materiality. Please advise us or revise accordingly.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Response:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a follow up to the Company&#146;s response on October&nbsp;13, 2011 to the Commission&#146;s letter dated
September&nbsp;22, 2011, the Company will include in its next filing the following disclosure:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">As previously disclosed, the Company identified certain over-accruals in
compensation and related expenses related to prior periods which the Company
adjusted during the three month period ended March&nbsp;31, 2010. These previously
recorded out-of-period adjustments, which were not material to any prior period,
resulted in an increase to compensation and related expenses of $3.7&nbsp;million for
the year ended December&nbsp;31, 2010. The over-accruals occurred in the Global High
Yield (&#147;GHY&#148;) loan sales and trading business and were the result of duplicate
production related compensation expenses being accrued. In addition, the Company
had other out-of-period adjustments in 2010 that offset the over-
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">accrual of GHY compensation totaling $1.1&nbsp;million that were also corrected in the
three month period ended March&nbsp;31, 2010. Most notably was the reversal of a legal
accrual of $1&nbsp;million related to the settlement of an Auction Rate Securities
(&#147;ARS&#148;) case and the recognition of a fair value adjustment of $1.1&nbsp;million
related to ARS as a result of this legal settlement (net effect of $67 thousand).
The remaining out-of-period adjustments, individually of lesser amounts, in the
aggregate were approximately $1&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company considered all of the above out-of-period adjustments both
individually and in the aggregate in light of several quantitative and qualitative
factors that mitigate the large percentage impact on pre-tax income when assessing
impact to the overall financial statements. The out-of-period adjustments of $3.7
million related to the GHY business did not result in any over payments to
employees or members of management. And compensation payments made in April&nbsp;2010
were substantially equal to and offsetting the amount referred to above. The
magnitude of the out-of-period adjustments were exacerbated by the low
profitability of the Company in 2009 and 2010. The adjustments did not impact the
trend of earnings from the net loss in 2008 to the net income reported in 2009 and
2010 nor did they cause income (loss)&nbsp;to result in loss (income)&nbsp;for any of the
periods in question. The adjustments for each period would have improved results
incrementally and did not change significantly the magnitude of the variances
period-over-period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">While this reduced level of earnings in 2009 and 2010 resulted in the net over
accrual being quantitatively large on pre-tax earnings, the Company assessed the
impact on return on assets, return on equity, total revenues, total expenses,
compensation expense, compensation as a percentage of revenue ratio, shareholders&#146;
equity, book value per share, and the capital markets business segment&#146;s total
revenues and profitability in determining the materiality of the adjustments to
the financial statements taken as a whole and concluded that the adjustments were
not material in the context of the overall financial statements. The Company also
considered factors such as there was no negative impact on regulatory or debt
covenant calculations as a result of these items. As a result, the Company
concluded that the impact of the adjustments was not material, individually or in
the aggregate, to the 2009 or 2010 consolidated financial statements.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">*****
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company acknowledges that it is responsible for the adequacy and accuracy of the disclosure in
the filing; staff comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filing; and the Company may not assert
staff comments as a defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Should you have further questions or comments, do not hesitate to contact the undersigned.
</DIV>


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    <TD colspan="4" align="left">Yours truly,<BR>
Oppenheimer Holdings Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="4" style="border-bottom: 0px solid #000000" align="left">Jeffrey J. Alfano,
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="4" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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