Document ID: SEC-2006-0608-0001
Agency: sec
Document Type: Rule
Title: Description of Duties of the General Counsel
Posted Date: 2006-05-11T04:00Z

[Federal Register: May 11, 2006 (Volume 71, Number 91)]
[Rules and Regulations]               
[Page 27385]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11my06-1]                         

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[[Page 27385]]

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-53755]

 
Description of Duties of the General Counsel

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Securities and Exchange Commission (Commission) is 
amending its description of the duties of the General Counsel to 
include preliminary investigations, in which no process is issued or 
testimony compelled, where it appears that an attorney appearing and 
practicing before the Commission may have violated Rule 102(e) of the 
Commission's Rules of Practice. The Office of the General Counsel of 
the Commission already has the authority to conduct Commission-
authorized proceedings and formal investigations under Section 21 of 
the Securities Exchange Act of 1934 (Exchange Act), including for 
violations by attorneys of Rule 102(e) of the Commission's Rules of 
Practice.
    An amendment of the description of the duties of the General 
Counsel to include preliminary investigations makes it clear that the 
General Counsel may gather evidence in Rule 102(e) cases without 
compulsory process where witnesses are willing to testify or provide 
information voluntarily. This amendment would enable the General 
Counsel to identify, through informal means, those matters that do not 
warrant full-blown investigation and compulsory process.

DATES: Effective Date: May 3, 2006.

FOR FURTHER INFORMATION CONTACT: Laura Walker, 202-551-5031, Office of 
the General Counsel, Office of Litigation and Administrative Practice.

SUPPLEMENTARY INFORMATION: Section 21(a)(1) of the Exchange Act 
authorizes the Commission to conduct investigations regarding 
violations of the Exchange Act or its related rules or regulations. 
Under 17 CFR 201.102(e), the Commission may discipline attorneys who 
practice before it who lack integrity or competence, engage in improper 
professional conduct, or who are determined to have violated the 
Federal securities laws. Under 17 CFR 200.21(a), the General Counsel is 
responsible for conducting administrative proceedings relating to the 
disqualification of lawyers from practice before the Commission.
    The Commission is amending its description of the duties of the 
General Counsel to include preliminary investigations, in which no 
process is issued or testimony compelled, where it appears that an 
attorney may have violated Rule 102(e) of the Commission's Rules of 
Practice.
    The Commission finds, in accordance with the Administrative 
Procedure Act (APA) (5 U.S.C. 553(b)(3)(A), that this revision relates 
solely to agency organization, procedures, or practices. It is 
therefore not subject to the provision of the APA requiring notice and 
opportunity for comment. Accordingly, it is effective May 3, 2006.

Text of Amendment

List of Subjects in 17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government agencies).

0
For the reasons set out in the preamble, title 17, chapter II of the 
Code of Federal Regulations is amended as follows:

PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND 
REQUESTS

0
1. The authority citation for part 200, subpart A, continues to read in 
part as follows:

    Authority: 15 U.S.C. 77s, 77o, 77sss, 78d, 78d-1, 78d-2, 78w, 
78ll(d), 78mm, 79t, 80a-37, 80b-11, and 7202, unless otherwise 
noted.
* * * * *

0
2. Section 200.21 is amended by revising the fourth sentence of 
paragraph (a) to read as follows:

Sec.  200.21  The General Counsel.

    (a) * * * In addition, he or she is responsible for advising the 
Commission at its request or at the request of any division director or 
office head, or on his or her own motion, with respect to 
interpretations involving questions of law; for the conduct of 
administrative proceedings relating to the disqualification of lawyers 
from practice before the Commission; for conducting preliminary 
investigations, as described in 17 CFR 202.5(a), into potential 
violations of 17 CFR 201.102(e) by attorneys; for the preparation of 
the Commission comments to the Congress on pending legislation; and for 
the drafting, in conjunction with appropriate divisions and offices, of 
legislative proposals to be sponsored by the Commission. * * *
* * * * *

    By the Commission.

    Dated: May 3, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06-4399 Filed 5-10-06; 8:45 am]

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