[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Rules and Regulations]
[Pages 5-6]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32250]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 200
[Release No. 34-35151]
Delegation of Authority
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
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SUMMARY: The Securities and Exchange Commission (``Commission'') is
amending Rule 30-3 of the Rules of Practice and Investigations to
delegate to the Director of the Division of Market Regulation
(``Division'') certain functions relating to proposed bylaw and rule
changes filed by the Securities Investor Protection Corporation
(``SIPC''). This amendment is intended to conserve the Commission's
resources and to relieve the Commission of the burden of considering
routine matters relating to SIPC's operation.
EFFECTIVE DATE: January 3, 1995.
FOR FURTHER INFORMATION CONTACT: Michael A. Macchiaroli, 202/942-0132,
Harry Melamed, 202/942-0134, or Elizabeth K. King, 202/942-0140.
SUPPLEMENTARY INFORMATION:
I. Introduction
Sections 3(e)(1) and 3(e)(2) of the Securities Investor Protection
Act of 1970 (``SIPA'') require SIPC to file proposed bylaw and rule
amendments with the Commission, and require, among other things, the
Commission to publish proposed rule amendments and certain proposed
bylaw amendments. Because most proposed bylaw amendments are routine
and do not merit the Commissions's attention, and because publication
of proposed rule changes, along with certain proposed bylaw changes, is
statutorily required, the Commission is delegating certain of the
functions relating to the proposed bylaw and rule change filings to the
Director of the Division.
II. Requirement Under SIPA Regarding Bylaw and Rule Changes Proposed by
SIPC
Section 3(e)(1) of SIPA requires SIPC to file any proposed bylaw
change with the Commission. Such a proposed bylaw amendment becomes
effective thirty days after the date it is filed, unless the Commission
either notifies SIPC that it disapproves the proposed bylaw change as
being contrary to the public interest or to the purposes of SIPA, or
that it has found that the proposed bylaw change involves matters of
significant public interest. The Commission also has the authority to
designate an effective date earlier than 30 days after filing. In those
instances in which the Commission notifies SIPC that the proposed bylaw
amendment involves matters of significant public interest, the
Commission may, in accordance with the procedures set forth in section
3(e)(2) of SIPA, publish notice of the proposed bylaw amendment and
provide opportunity for public comment. After public comment, the
proposed bylaw change becomes effective only after it is approved by
the Commission, or otherwise is permitted to become effective under
section 3(e)(2) of SIPA.
SIPC, under section 3(e)(2) of SIPA, also must file proposed rule
amendments with the Commission. The Commission is required to publish
notices of proposed rule amendments and provide an opportunity for the
public to comment. The proposed rule change may not take effect unless
it is approved by the Commission, or otherwise is permitted to become
effective under section 3(e)(2) of SIPA. [[Page 6]]
III. Delegation of Authority to the Director of the Division of Market
Regulation
In the absence of a delegation of authority, the Commission is
required to consider each bylaw and rule change proposed by SIPC. In
order to relieve the Commission from the burden of considering routine
matters regarding the operation of SIPC, the Commission is delegating
certain of its authority under sections 3(e)(1) and (3)(e)(2) of SIPA
to the Director of the Division.
Specifically, the Commission is delegating its authority under
section 3(e)(1) to the Director of the Division to make a
determination, and to notify SIPC of this determination, as to whether
a proposed bylaw change (i) should not be disapproved and, therefore,
become effective 30 days after filing or (ii) involves matters of such
significant public interest that public comment should be obtained. In
addition, the Commission is delegating authority to the Director of the
Division to accelerate the effective date of a bylaw change. Finally,
the Commission is delegating its authority to publish for comment, in
accordance with section 3(e)(2) of SIPA, those proposed bylaw changes
determined to be matters of significant public interest, as well as all
proposed rule changes. The Commission, however, will retain its
authority to approve proposed bylaw and rule amendments after the
comment period is completed.
Accordingly, the Commission is amending Rule 30-3 of the Rules of
Practice and Investigations (``Rule 30-3'').\1\ Notwithstanding these
delegations of authority, the Division will bring any significant
proposed bylaw or rule amendments to the Commission's attention for its
consideration.
\1\17 CFR 200.30-3.
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The Commission finds, in accordance with section 553(b)(A) of the
Administrative Procedures Act,\2\ that these amendments relate solely
to agency organization and procedure, and do not relate to a
substantive rule. Accordingly, notice and opportunity for public
comment are unnecessary, and publication of the amendment 30 days
before its effective date also is unnecessary.
\2\15 U.S.C. Sec. 553(b)(A).
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IV. Statutory Basis and Text of Amendments
List of Subjects in 17 CFR Part 200
Administrative practice and procedure, Authority delegations
(Government agencies), Organizations and functions (Government
organizations).
In accordance with the foregoing, Title 17, Chapter II of the Code
of Federal Regulations is amended as follows:
PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION
REQUESTS
Subpart A--Organization and Program Management
1. The authority citation for Part 200, Subpart A continues, in
part, to read as follows:
Authority: 15 U.S.C. 77s, 78d-1, 78d-2, 78w, 78ll(d), 79t,
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *
2. Section 200.30-3 is amended by revising paragraph (f) to read as
follows:
Sec. 200.30-3 Delegation of authority to director of division of
market regulation.
* * * * *
(f) With respect to the Securities Investor Protection Act of 1970,
as amended, 15 U.S.C. 78aaa, et seq. (``SIPA''):
(1) Pursuant to Section 3(a)(2)(B) of SIPA, to:
(i) Extend for a period not exceeding 90 days from the date of the
filing of the determination by the Securities Investor Protection
Corporation (``SIPC'') that a registered broker-dealer is not a SIPC
member because it conducts its principal business outside the United
States and its territories and possessions, the period during which the
Commission must affirm, reverse or amend any determination by SIPC; and
(ii) Affirm such determination filed by SIPC.
(2) Pursuant to Section (3)(e)(1) of SIPA, to:
(i) Determine whether proposed bylaw changes filed by SIPC should
not be disapproved or whether the proposed bylaw change is a matter of
such significant public interest that public comment should be
obtained, in which case the Division will notify SIPC of such finding
and publish notice of the proposed bylaw change in accordance with
Section 3(e)(2) of SIPA; and
(ii) Accelerate the effective date of proposed bylaw changes filed
by SIPC.
(3) Pursuant to Section (3)(e)(2) of SIPA, to publish notice of
proposed rule changes filed by SIPC.
By the Commission.
Dated: December 27, 1994.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-32250 Filed 12-30-94; 8:45 am]
BILLING CODE 8010-01-M
