Document ID: SEC-2010-1363-0001
Agency: sec
Document Type: Rule
Title: Delegations of Authority to Director of Division of Enforcement
Posted Date: 2010-09-08T04:00Z

[Federal Register: September 8, 2010 (Volume 75, Number 173)]
[Rules and Regulations]               
[Page 54464-54465]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08se10-3]                         

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-62821]

 
Delegation of Authority to the Director of Its Division of 
Enforcement

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Commission is amending its rules to delegate authority to 
the Director of the Division of Enforcement, in connection with the 
collection of delinquent debts arising from actions to enforce the 
federal securities laws, to terminate collection activity or discharge 
debts, to accept or reject offers to compromise debts, and to accept or 
reject offers to enter into payment plans. This action is intended to 
facilitate the Commission's debt resolution process.

DATES: Effective Date: September 8, 2010.

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

SUPPLEMENTARY INFORMATION: The Division of Enforcement seeks actively 
to collect amounts imposed in the civil actions that it files in 
federal district court and in administrative proceedings; these amounts 
represent disgorgement of ill-gotten gains from violations of the 
Federal securities laws and civil penalties. The Division pursues debts 
through further litigation, including contempt proceedings, against the 
debtor, and is authorized to refer delinquent debts to the U.S. 
Department of the Treasury for administrative collection activity, 
including offset of debts against amounts otherwise owed by the 
government to the debtor and administrative garnishment of a debtor's 
wages.
    Based upon a debtor's financial condition, as substantiated by 
creditable evidence, the Commission may determine to accept a debtor's 
offer to pay the debt in installments, or to compromise, i.e., satisfy 
the debt by payment of a lesser amount than the outstanding balance. In 
addition, when all reasonable steps have been taken to collect a debt, 
the Commission may authorize its staff to terminate collection activity 
or discharge the debt. Termination of collection activity preserves the 
debt as an obligation of the debtor, and does not bar future activity 
to collect the debt should that become practicable. Discharge of the 
debt is essentially a forgiveness of the debtor's obligation to pay, 
which may have tax consequences for the debtor. The Commission is 
delegating to the Director of the Division of Enforcement the authority 
to resolve certain debts arising from actions to enforce the federal 
securities laws; in particular, the Director is authorized to terminate 
collection activity or discharge debts, to accept offers to compromise 
debts (when the principal amount of the debt is $5 million or less) or 
to reject any offers to compromise debts, and to accept or reject 
offers to enter into payment plans. This delegation will improve the 
efficiency of the Division's debt collection program.
    In any case the Division Director deems appropriate, the 
recommendation that a debt be resolved through termination of 
collection activity, discharge or by payment plan or compromise, may be 
submitted to the Commission for review.
    Administrative Law Matters:
    The Commission finds, in accordance with section 553(b)(3)(A) of 
the Administrative Procedure Act (``APA'') (5 U.S.C. 553(b)(3)(A)) that 
this amendment relates solely to agency organization, procedure, or 
practice, and does not relate to a substantive rule. Accordingly, 
notice, opportunity for public comment, and publication of the 
amendment prior to its effective date are unnecessary. For the same 
reason, and because this amendment does not substantively affect the 
rights or obligations of non-agency parties, the provisions of the 
Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 804(3)(C), 
are not applicable. Additionally, the provisions of the Regulatory 
Flexibility Act, which apply only when notice and comment are required 
by the APA or other law, 5 U.S.C. 603, are not applicable. Section 
23(a)(2) of the Securities Exchange Act of 1934, 15 U.S.C. 78w(a)(2), 
requires the Commission, in adopting rules under that Act, to consider 
the anticompetitive effects of any rules it adopts. The Commission does 
not believe that the amendment the Commission is adopting today will 
have any impact on competition. Finally, this amendment does not 
contain any collection of information requirements as defined by the 
Paperwork Reduction Act of 1980, as amended.

List of Subjects in 17 CFR Part 200

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

[[Page 54465]]

Text of Amendment

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. 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 adding paragraph (a)(15) to read as 
follows:

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

* * * * *
    (a) * * *
    (15) With respect to debts arising from actions to enforce the 
federal securities laws, to terminate collection activity or discharge 
debts, to accept offers to compromise debts when the principal amount 
of the debt is $5 million or less, to reject offers to compromise 
debts, and to accept or reject offers to enter into payment plans.
* * * * *

    By the Commission.

    Dated: September 1, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-22241 Filed 9-7-10; 8:45 am]
BILLING CODE 8010-01-P