Document ID: SEC-2009-1138-0001
Agency: sec
Document Type: Rule
Title: Delegation of Authority to Director of Division of Enforcement
Posted Date: 2009-08-11T04:00Z

[Federal Register: August 11, 2009 (Volume 74, Number 153)]
[Rules and Regulations]               
[Page 40068-40069]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au09-9]                         

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-60448]

 
Delegation of Authority to Director of 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 to issue formal orders of 
investigation. These orders designate the enforcement staff authorized 
to issue subpoenas in connection with investigations under the federal 
securities laws. This action is intended to expedite the investigative 
process by removing the need for enforcement staff to seek Commission 
approval prior to performing routine functions. The Commission is 
adopting this delegation for a one-year period, and at the end of the 
period will evaluate whether to extend the delegation (though any 
formal orders issued during this period will remain in effect).

DATES: Effective Date: August 11, 2009.

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 Commission is authorized to conduct 
investigations of possible violations of the federal securities laws, 
which provide that ``any member of the Commission or any officer 
designated by it is empowered to administer oaths and affirmations, 
subpoena witnesses, compel their attendance, take evidence, and require 
the production of any books, papers, correspondence, memoranda, or 
other records which the Commission deems relevant or material to the 
inquiry.'' Section 21(b) of the Securities Exchange Act of 1934, 15 
U.S.C. 78u(b). See also, Section 19(c) of the Securities Act of 1933, 
15 U.S.C. 77s(c); 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). The Commission issues formal orders of 
investigation that authorize specifically designated enforcement staff 
to exercise the Commission's statutory power to subpoena witnesses and 
take the other actions authorized by the relevant cited provisions. The 
Commission is delegating the authority to issue formal orders of 
investigation to the Director of the Division of Enforcement. This 
delegation will expedite the investigative process by reducing the time 
and paperwork previously associated with obtaining Commission 
authorization prior to issuing subpoenas.
    In any case the Division Director deems appropriate, the 
recommendation that a formal order be issued may be submitted to the 
Commission for review.

Administrative Law Matters

    The Commission finds, in accordance with the Administrative 
Procedure Act (APA) (5 U.S.C. 553(b)(3)(A)), that this amendment 
relates solely to agency organization, procedure, or practice. 
Accordingly, the provisions of the APA regarding notice of the proposed 
rulemaking and opportunities for public participation, 5 U.S.C. 553, 
are not applicable. 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, 15 
U.S.C. 78w, requires the Commission, in adopting rules under that Act, 
to consider the anticompetitive effects of any rules it adopts. Because 
the amendment imposes no new burdens on parties in investigations, the 
Commission does not believe it 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

[[Page 40069]]

amended. Accordingly, the amendment is effective August 11, 2009.

List of Subjects in 17 CFR Part 200

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

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)(13) to read as 
follows:

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

* * * * *
    (a) * * *
    (13) For the period from August 11, 2009 through August 11, 2010, 
to order the making of private investigations pursuant to section 19(b) 
of the Securities Act of 1933 (15 U.S.C. 77s(b)), 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: August 5, 2009.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-19116 Filed 8-10-09; 8:45 am]