Document ID: SEC-2010-1108-0001
Agency: sec
Document Type: Rule
Title: Rules of Organization; Conduct and Ethics; and Information and Requests:
Posted Date: 2010-07-22T04:00Z

[Federal Register Volume 75, Number 140 (Thursday, July 22, 2010)]
[Rules and Regulations]
[Pages 42599-42601]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17897]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-62520]

Technical Amendment to Rules of Organization; Conduct and Ethics; 
and Information and Requests

AGENCY: Securities and Exchange Commission.

ACTION: Final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission (``Commission'') is 
making technical amendments to the rule by which authority is delegated 
to the Director of the Division of Enforcement. The amendments update 
references to the provision in the Securities Act of 1933 (``Securities 
Act'') which authorizes the Commission to issue subpoenas in 
investigations under the Securities Act, and delete references to the 
Public Utility Holding Company Act of 1935 (``PUHCA'').

DATES: Effective Date: July 22, 2010.

FOR FURTHER INFORMATION CONTACT: Kenneth H. Hall, Assistant Chief 
Counsel, 202-551-4936, Office of Chief Counsel, Division of 
Enforcement, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-6553.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission is authorized to conduct investigations of possible 
violations of the Securities Act. Specifically, section 19(c) of the 
Securities Act \1\ provides that,
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 77s(c).

    For the purpose of any investigations which, in the opinion of 
the Commission, are necessary and proper for the enforcement of this 
title, any member of the Commission or any officer or officers 
designated by it are empowered to administer oaths and affirmations, 
subpena [sic] witnesses, take evidence, and require the production 
of any books, papers, or other documents which the Commission deems 
relevant or material to the inquiry. Such attendance of witnesses 
and the production of such documentary evidence may be required from 
any place in the United States or any Territory at any designated 
---------------------------------------------------------------------------
place of hearing.

[[Page 42600]]

Section 21(b) of the Securities Exchange Act of 1934 (``Exchange 
Act''),\2\ section 42(b) of the Investment Company Act of 1940 \3\ and 
section 209(b) of the Investment Advisers Act of 1940 \4\ also include 
provisions authorizing investigations. The Sarbanes-Oxley Act of 2002 
\5\ amended section 19 of the Securities Act by inserting a new section 
(b), and by redesignating prior sections (b) and (c) as sections (c) 
and (d), respectively.\6\ As a result of the statutory amendment, 
section 19(b) of the Securities Act, which pertained to investigations 
of possible Securities Act violations, was redesignated as section 
19(c). To reflect this change, the Commission is adopting technical 
amendments to Rule 30-4, which delegates authority to the Director of 
its Division of Enforcement to take certain actions during 
investigations, including investigations under the Securities Act. 
Specifically, paragraphs (a)(1), (a)(4), (a)(10), (a)(11), and (a)(13) 
of Rule 30-4 \7\ are each being amended to refer to ``section 19(c) of 
the Securities Act of 1933 (15 U.S.C. 77s(c)).''
---------------------------------------------------------------------------

    \2\ 15 U.S.C. 78u(b).
    \3\ 15 U.S.C. 80a-41(b).
    \4\ 15 U.S.C. 80b-9(b).
    \5\ Public Law 107-204, 116 Stat. 745 (2002).
    \6\ Section 108(a)(1) and (2).
    \7\ 17 CFR 200.30-4(a)(1), (4), (10), (11), and (13).
---------------------------------------------------------------------------

    PUHCA was repealed by the Energy Policy Act of 2005.\8\ To reflect 
this change, the Commission is also adopting technical amendments to 
Rule 30-4 to remove references to investigations brought under PUHCA. 
Specifically, paragraphs (a)(1), (a)(3), (a)(4), (a)(10), and (a)(11) 
of Rule 30-4 are each being amended to remove references to ``section 
18(c) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 
79r(c)).''
---------------------------------------------------------------------------

    \8\ Public Law 109-58, 119 Stat. 624 (2005).
---------------------------------------------------------------------------

II. Administrative Law Matters

    Under the Administrative Procedure Act (``APA''), notice of 
proposed rulemaking is not required when an agency, for good cause, 
finds that notice and public comment are impracticable, unnecessary, or 
contrary to the public interest.'' \9\ The amendments are technical 
changes, adopted solely to update references to a statutory provision 
that remains unchanged except for its designation. For this reason, the 
Commission finds that it is unnecessary to publish notice of these 
amendments. Similarly, the amendments do not require analysis under the 
Regulatory Flexibility Act or analysis of major rule status under the 
Small Business Regulatory Fairness Act. See 5 U.S.C. 601(2) (for 
purposes of Regulatory Flexibility Act analysis, the term ``rule'' 
means any rule for which the agency publishes a general notice of 
proposed rulemaking); and 5 U.S.C. 804(3)(C) (for purposes of 
Congressional review of agency rulemaking, the term ``rule'' does not 
include any rule of agency organization, procedure or practice that 
does not substantially affect the rights or obligations of non-agency 
parties).
---------------------------------------------------------------------------

    \9\ 5 U.S.C. 553(b).
---------------------------------------------------------------------------

    Section 23(a)(2) of the Exchange Act requires the Commission, in 
adopting rules under the Exchange Act, to consider the competitive 
effects of such rules.\10\ Because this amendment merely makes 
technical changes to update statutory references, no competitive 
advantages or disadvantages would be created.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78w(a)(2).
---------------------------------------------------------------------------

III. Statutory Authority and Text of Amendments

    We are adopting these technical amendments under the authority set 
forth in section 23(a) of the Exchange Act.\11\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 782w(a).
---------------------------------------------------------------------------

List of Subjects in 17 CFR Part 200

    Rules of organization, Conduct and ethics, and Information and 
requests.

Text of Amendments

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--RULES OF 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. 77o, 77s, 77sss, 78d, 78d-1, 78d-2, 78w, 
78ll(d), 78mm, 80a-37, 80b-11, and 7202, unless otherwise noted.

0
2. Section 200.30-4 is amended by revising paragraphs (a)(1), (a)(3), 
(a)(4), (a)(10), (a)(11) and (13) to read as follows:

Sec.  200.30-4  Delegation of authority to Director of Division of 
Enforcement.

* * * * *
    (a)(1) To designate officers empowered to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any books, papers, 
correspondence, memoranda, contracts, agreements, or other records in 
the course of investigations instituted by the Commission pursuant to 
section 19(c) of the Securities Act of 1933 (15 U.S.C. 77s(c)), section 
21(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(b)), 
section 42(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-
41(b)) and section 209(b) of the Investment Advisers Act of 1940 (15 
U.S.C. 80b-9(b)).
* * * * *
    (3) To terminate and close all investigations authorized by the 
Commission pursuant to section 20 of the Securities Act of 1933 (15 
U.S.C. 77t), section 21 of the Securities Exchange Act of 1934 (15 
U.S.C. 78u), section 42 of the Investment Company Act of 1940 (15 
U.S.C. 80a-41) and section 209 of the Investment Advisers Act of 1940 
(15 U.S.C. 80b-9).
    (4) To terminate the authority to administer oaths and 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any books, papers, 
correspondence, memoranda, contracts, agreements, or other records in 
the course of investigations instituted by the Commission pursuant to 
section 19(c) of the Securities Act of 1933 (15 U.S.C. 77s(c)), section 
21(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u(b)), 
section 42(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-
41(b)) and section 209(b) of the Investment Advisers Act of 1940 (15 
U.S.C. 80b-9(b)).
* * * * *
    (10) To institute subpoena enforcement proceedings in federal court 
to seek an order compelling the production of documents or an 
individual's appearance for testimony pursuant to subpoenas issued 
pursuant to paragraph (a)(1) of this section in connection with 
investigations pursuant to section 19(c) of the Securities Act of 1933 
(15 U.S.C. 77s(c)), section 21(b) of the Securities Exchange Act of 
1934 (15 U.S.C. 78u(b)), section 42(b) of the Investment Company Act of 
1940 (15 U.S.C. 80a-41(b)) and section 209(b) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b-9(b)).
    (11) To authorize staff to appear in federal bankruptcy court to 
preserve Commission claims in connection with investigations pursuant 
to section 19(c) of the Securities Act of 1933 (15 U.S.C. 77s(c)), 
section 21(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78u(b)), section 42(b) of the Investment Company Act of 1940 (15 U.S.C. 
80a-41(b)) and section 209(b) of the Investment Advisers Act of 1940 
(15 U.S.C. 80b-9(b)).
* * * * *
    (13) For the period from August 11, 2009 through August 11, 2010, 
to order

[[Page 42601]]

the making of private investigations pursuant to section 19(c) of the 
Securities Act of 1933 (15 U.S.C. 77s(c)), section 21(b) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78u(b)), section 42(b) of 
the Investment Company Act of 1940 (15 U.S.C. 80a-41(b) and section 
209(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(b)). 
Orders issued pursuant to this delegation during this period will 
continue to have effect after August 11, 2010.
* * * * *

    Dated: July 16, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17897 Filed 7-21-10; 8:45 am]
BILLING CODE 8010-01-P