Document ID: SEC-2010-1238-0001
Agency: sec
Document Type: Rule
Title: Delegation of Authority to the Director of its Division of Enforcement
Posted Date: 2010-08-16T04:00Z

[Federal Register: August 16, 2010 (Volume 75, Number 157)]
[Rules and Regulations]               
[Page 49820]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au10-5]                         

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-62690]

 
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 remove a sunset 
provision from the delegation of authority to the Director of the 
Division of Enforcement to issue formal orders of investigation. Formal 
orders designate the enforcement staff authorized to issue subpoenas in 
connection with investigations under the Federal securities laws. On 
August 5, 2009, the Commission issued a release authorizing the 
Division Director to issue such orders for a one-year period beginning 
on August 11, 2009 and ending on August 11, 2010. The sunset provision 
was included to permit the Commission to evaluate the Division's use of 
the delegation and to consider whether extension of the delegation was 
appropriate.

DATES: Effective Date: August 16, 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: 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. 77(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 delegated authority to issue formal orders of investigation 
to the Director of the Division of Enforcement on August 11, 2009. 
``Delegation of Authority to Director of Division of Enforcement,'' 74 
FR 40068 (Aug. 11, 2009). The delegation was made effective for a one-
year period, ending on August 11, 2010, to allow Commission review of 
the Division's exercise of formal order authority.
    The Commission has determined that it is appropriate to extend the 
Division's authority to issue formal orders of investigation. In making 
this determination, the Commission considered the increased efficiency 
in the Division's conduct of its investigations permitted by the 
delegation, and the Division's continued effective communication and 
coordination in addressing pertinent legal and policy issues with other 
Commission Divisions and Offices when formal order authority is 
invoked.

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 and does 
not relate to a substantive rule. Accordingly, the provisions of the 
APA regarding notice of the proposed rulemaking, opportunities for 
public participation, and publication of the amendment prior to its 
effective date, 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(a)(2), 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 amended. Accordingly, the 
amendment is effective August 16, 2010.

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 revising paragraph (a)(13) to read as 
follows:

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

* * * * *
    (a) * * *
    (13) To order 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)).
* * * * *

    Dated: August 11, 2010.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-20197 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P