Document ID: SEC-2006-0712-0001
Agency: sec
Document Type: Notice
Title: Privacy Act of 1974: System of Records: Office of Inspector General Investigative Files (SEC-43)
Posted Date: 2006-06-01T04:00Z

[Federal Register: June 1, 2006 (Volume 71, Number 105)]
[Notices]               
[Page 31230-31232]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jn06-113]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. PA-36; File No. S7-09-06]

 
Privacy Act of 1974: System of Records: Office of Inspector 
General Investigative Files (SEC-43)

AGENCY: Securities and Exchange Commission.

ACTION: Notice of an altered system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the Securities and Exchange Commission 
proposes to alter a Privacy Act system of records: ``Office of 
Inspector General Investigative Files (SEC-43)'', originally published 
at 55 FR 1744, January 18, 1990. Revisions to this system were last 
published at 63 FR 11936, March 11, 1998.

[[Page 31231]]

DATES: The changes will become effective July 11, 2006 unless further 
notice is given. The Commission will publish a new notice if the 
effective date is delayed to review comments or if changes are made 
based on comments received. To be assured of consideration, comments 
should be received on or before July 3, 2006.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/other.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number S7-09-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number S7-09-06. This file number 
should be included on the subject line if e-mail is used. To help us 
process and review your comments more efficiently, please use only one 
method. The Commission will post all comments on the Commission's 
Internet Web site (http://www.sec.gov/rules/other.shtml). Comments are 

also available for public inspection and copying in the Commission's 
Public Reference Room, 100 F Street, NE., Washington, DC 20549. All 
comments received will be posted without change; we do not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Barbara A. Stance, Chief Privacy 
Officer, U.S. Securities and Exchange Commission, Operations Center, 
6432 General Green Way, Mail Stop 0-7, Alexandria, VA 22312-2413, (202) 
551-7209.

SUPPLEMENTARY INFORMATION: The Commission proposes to alter a system of 
records, ``Office of Inspector General Investigative Files (SEC-43).'' 
As described in the original notice, the system contains investigatory 
material compiled for law enforcement purposes. This notice changes the 
system location address and the address of the system manager; 
clarifies the categories of individuals covered by the system; and 
expands the categories of records in the system to include incoming 
complaints and complaint logs, preliminary inquiry files and indexes, 
and declarations from witnesses. This notice also eliminates or 
consolidates some routine uses, and adds a routine use to disclose 
information to the Integrity Committee of the President's Council on 
Integrity and Efficiency and the Executive Council on Integrity and 
Efficiency, another Federal Office of Inspector General, or other 
Federal law enforcement office in connection with an investigation, 
inquiry or review conducted pursuant to Executive Order 12993, or at 
the request of the SEC Inspector General.
    The Commission has submitted a report of the altered system of 
records to the Senate Committee on Homeland Security and Governmental 
Affairs, the House Committee on Government Reform, and the Office of 
Management and Budget, pursuant to 5 U.S.C. 552a(r) of the Privacy Act 
of 1974, as amended, and Appendix I to OMB Circular A-130, ``Federal 
Agency Responsibilities for Maintaining Records About Individuals,'' as 
amended on February 20, 1996 (61 FR 6435).
    Accordingly, the Commission is altering the system of records to 
read as follows:
SEC-43

SYSTEM NAME:
    Office of Inspector General Investigative Files.

SYSTEM LOCATION:
    Office of Inspector General, Securities and Exchange Commission, 
100 F Street, NE., Washington, DC 20549-2376.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system of records contains records on individuals who are or 
have been subjects of the Office of Inspector General's investigations 
or inquiries relating to programs and operations of the Commission.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Incoming complaints and complaint logs; preliminary inquiry files 
and indexes; all correspondence relevant to the investigation; all 
internal staff memoranda; copies of all subpoenas issued during the 
investigation; affidavits, declarations and statements from witnesses; 
transcripts of testimony taken in the investigation and accompanying 
exhibits; documents and records or copies obtained during the 
investigation; working papers of the staff and other documents and 
records relating to the investigation; opening reports, investigative 
plans, progress reports, and closing reports; and investigative peer 
review files.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Inspector General Act of 1978, as amended, Pub. L. 95-452, 5 U.S.C. 
App.

PURPOSE(S):
    The purpose of this system of records is to enable the Commission's 
Office of Inspector General to carry out its mandate under the 
Inspector General Act Amendments of 1988. The system will consist of 
files and records compiled by the Commission's Office of Inspector 
General on Commission employees or other persons who have been part of 
an investigation for fraud and abuse with respect to the Commission's 
programs and operations.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSE OF SUCH USES:
    Information in the system may be disclosed:
    (1) Where there is an indication of a violation or a potential 
violation of law, whether civil, criminal or regulatory in nature, 
whether arising by general statute or particular program statute, or by 
regulation, rule or order issued pursuant thereto, to the appropriate 
agency, whether Federal, foreign, state, or local, or to a securities 
self-regulatory organization, charged with enforcing or implementing 
the statute, or rule, regulation or order.
    (2) To Federal, foreign, state, or local authorities in order to 
obtain information or records relevant to an Office of Inspector 
General investigation or inquiry.
    (3) To Federal, foreign, state, or local governmental authorities 
in response to their request in connection with the hiring or retention 
of an employee, disciplinary or other administrative action concerning 
an employee, the issuance of a security clearance, the reporting of an 
investigation of an employee, the letting of a contract, or the 
issuance of a license, grant or other benefit by the requesting agency, 
to the extent that the information is relevant and necessary to the 
requesting agency's decision in the matter.
    (4) To non-governmental parties where those parties may have 
information the Office of Inspector General seeks to obtain in 
connection with an investigation or inquiry.
    (5) To independent auditors or other private firms or individuals 
with which the Office of Inspector General has contracted to carry out 
an independent audit, or to provide support for audits, reviews, 
investigations or other inquiries. These contractors will be required 
to maintain Privacy Act safeguards with respect to such records.
    (6) To respond to subpoenas in any litigation or other proceeding.

[[Page 31232]]

    (7) To the Department of Justice and/or the Office of General 
Counsel of the Commission when the defendant in litigation is: (a) Any 
component of the Commission or any employee of the Commission or any 
employee of the Commission in his or her official capacity; (b) the 
United States where the Commission determines that the claim, if 
successful, is likely to directly affect the operations of the 
Commission; or (c) any Commission employee in his or her individual 
capacity where the Department of Justice and/or the Office of General 
Counsel of the Commission agree to represent such employee.
    (8) To a Congressional office in response to an inquiry from the 
Congressional office made at the request of an individual but only from 
the record of that individual.
    (9) To inform complainants, victims, and witnesses of the results 
of an investigation or inquiry.
    (10) To qualified individuals or organizations in connection with 
the performance of a peer review or other study of the Office of 
Inspector General's audit or investigative functions.
    (11) To a Federal agency responsible for considering debarment or 
suspension action if the record would be relevant to such action.
    (12) To the Department of Justice for the purpose of obtaining its 
advice on Freedom of Information Act matters.
    (13) To the Office of Management and Budget for the purpose of 
obtaining its advice on Privacy Act matters.
    (14) To a public or professional licensing organization if the 
record indicates, either by itself or in combination with other 
information, a violation or potential violation of professional 
standards, or reflects on the moral, educational, or professional 
qualifications of an individual who is licensed or who is seeking to 
become licensed.
    (15) To the Office of Government Ethics (OGE) to comply with agency 
reporting requirements established by OGE in 5 CFR part 2638, subpart 
F.
    (16) To the news media and the public when there exists a 
legitimate public interest (e.g., to provide information on events in 
the criminal process, such as an indictment).
    (17) To the Integrity Committee of the President's Council on 
Integrity and Efficiency and the Executive Council on Integrity and 
Efficiency, another Federal Office of Inspector General, or other 
Federal law enforcement office in connection with an investigation, 
inquiry or review conducted pursuant to Executive Order 12993, or at 
the request of the SEC Inspector General.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    The Office of Inspector General Investigative Files consists of 
paper records maintained in folders, binders and logbooks; various 
records in electronic form; and an automated data base. The folders, 
binders and logbooks are stored in the Office of Inspector General's 
file cabinets and offices. The automated data base and electronic 
records are maintained on a file server and backup tapes in encrypted 
form.

RETRIEVABILITY:
    The records are retrieved by the name of the subject of the 
investigation or inquiry, or by a unique control number assigned to 
each investigation or inquiry.

SAFEGUARDS:
    These records are available only to those persons whose official 
duties require such access. The records are kept in limited access 
areas during duty hours and in locked file rooms or locked offices at 
all other times.

RETENTION AND DISPOSAL:
    The Investigative Files are kept in accordance with the Office of 
Inspector General's record retention schedule.

SYSTEM MANAGER(S) AND ADDRESS:
    Inspector General, Office of Inspector General, Securities and 
Exchange Commission, 100 F Street, NE., Washington, DC 20549-2736.

NOTIFICATION PROCEDURES:
    All requests to determine whether this system of records contains a 
record pertaining to the requesting individual may be directed to the 
Privacy Act Officer, U.S. Securities and Exchange Commission, 
Operations Center, 6432 General Green Way, Mail Stop 0-7, Alexandria, 
VA 22312-2413.

RECORD ACCESS AND CONTESTING PROCEDURES:
    Persons wishing to obtain information on the procedures for gaining 
access to or contesting the contents of this record may contact the 
Privacy Act Officer, U.S. Securities and Exchange Commission, 
Operations Center, 6432 General Green Way, Mail Stop 0-7, Alexandria, 
VA 22312-2413.

RECORD SOURCE CATEGORIES:
    Information in these records is supplied by: Individuals including, 
where practicable, those to whom the information relates; witnesses, 
corporations and other entities; records of individuals and of the 
Commission; records of other entities; Federal, foreign, state or local 
bodies and law enforcement agencies; documents and correspondence 
relating to litigation; transcripts of testimony; and miscellaneous 
other sources.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    Pursuant to 5 U.S.C. 552a(j)(2), this system of records, to the 
extent it pertains to the enforcement of criminal laws, is exempted 
from all provisions of the Privacy Act of 1974, 5 U.S.C. 552a, except 
subsections (b), (c)(1) and (2), (e)(4)(A) through (F), (e)(6), (7), 
(9), (10), and (11), and (i).
    Pursuant to 5 U.S.C. 552a(k)(2), this system of records to the 
extent it consists of investigatory material compiled for law 
enforcement purposes, is exempted from the following provisions of the 
Privacy Act of 1974, 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H), 
and (I), and (f) other than material within the scope of the exemption 
at 5 U.S.C. 552a(j)(2).
    These exemptions are contained in 17 CFR 200.313.

    Dated: May 24, 2006.

    By the Commission.
Nancy M. Morris,
Secretary.
 [FR Doc. E6-8472 Filed 5-31-06; 8:45 am]

BILLING CODE 8010-01-P