[Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19007]
[[Page Unknown]]
[Federal Register: August 4, 1994]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 200
[Release No. 34-34466]
Delegation of Authority to the Office of General Counsel
agency: Securities and Exchange Commission.
action: Final rule.
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summary: The Securities and Exchange Commission is amending its rules
on organization and program management to rescind its delegation of
authority for advice and activities concerning certain proceedings
conducted pursuant to the provisions of Rule 2(e) of the Commission's
Rules of Practice to the Executive Assistant to the Chairman and to
transfer that delegation to the Office of the General Counsel.
effective date: September 6, 1994.
for further information contact: Joan L. Loizeaux, Assistant General
Counsel, or Susie Youn, Attorney, Office of the General Counsel, (202)
942-0990.
supplementary information: In 1989, in connection with the
consolidation of the Office of Opinions and Review into the Office of
the General Counsel, the responsibility to advise the Commission, make
certain procedural decisions, and take certain actions in connection
with Rule 2(e) proceedings was delegated to the Executive Assistant to
the Chairman. The delegation was designed to ensure required separation
of functions in light of the fact that the General Counsel was then
responsible for prosecuting Rule 2(e) proceedings. In February 1993,
the Task Force on Administrative Proceedings of the Securities and
Exchange Commission recommended that the authority to advise the
Commission with respect to Rule 2(e) proceedings be delegated to the
Office of the General Counsel. Since then, responsibility for the
prosecution of Rule 2(e) proceedings involving professionals, other
than attorneys, has been transferred to the Division of Enforcement.
Transfer of the responsibility to advise the Commission, make certain
procedural decisions, and take certain actions in connection with Rule
2(e) proceedings would permit the Commission to employ, with respect to
those proceedings, the staff that reviews and prepares opinions and
orders in other proceedings decided by the Commission. The Commission
has determined to adopt the Task Force's recommendations and is not
delegating the responsibility to advise the Commission, make certain
procedural decisions, and take certain actions in connection with Rule
2(e) proceedings to the General Counsel.
The delegation provides that, in a case in which the involvement of
the General Counsel is deemed inappropriate for any reason, the
Executive Assistant to the Chairman, or other staff outside the Office
of the General Counsel, will assume responsibility for the matter. In
light of the fact that the General Counsel retains responsibility for
prosecuting Rule 2(e) proceedings against attorneys, the Commission
intends that persons other than staff in the Office of the General
Counsel will provide advice concerning any such matters so long as the
Office of the General Counsel prosecutes such cases. Some minor
clarifying changes in language, without substantive effect, are also
being made.
The Commission finds, in accordance with the Administrative
Procedure Act, 5 U.S.C. 553(b)(3)(A), that this revision relates solely
to agency organization, procedures, or practice. It is therefore not
subject to the provisions of the Administrative Procedure Act requiring
prior publication. The Regulatory Flexibility Act, 5 U.S.C. 601 et
seq., also does not apply. The revisions adopted today are effective
September 6, 1994.
List of Subjects in 17 CFR Part 200
Administrative practice and procedure, Authority delegations
(Government agencies).
Text of Amendments
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
1. The authority citation for Part 200, Subpart A continues to
read, in part, as follows:
Authority: 15 U.S.C. 77s, 78d-1, 78d-2, 78w, 7811(d), 79t,
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *
2. Section 200.30-14 is amended by revising the introductory text
of paragraph (g)(1) and paragraphs (g)(2), (g)(5), and (h) to read as
follows:
Sec. 200.30-14 Delegation of authority to the General Counsel.
* * * * *
(g)(1) With respect to proceedings conducted pursuant to the
Securities Act of 1933 (15 U.S.C. 77a, et seq.), the Securities
Exchange Act of 1934 (15 U.S.C. 78a, et seq.), the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79a, et seq.), the Trust
Indenture Act of 1939 (15 U.S.C. 77aaa, et seq.), the Investment
Company Act of 1940 (15 U.S.C. 80a-1, et seq.), the Securities Investor
Protection Act of 1970 (15 U.S.C. 78aaa, et seq.), and the provisions
of Rule 2(e) of the Commission's Rules of Practice (Sec. 201.2(e) of
this chapter):
* * * * *
(2) With respect to proceedings conducted pursuant to the
Securities Act of 1933 (15 U.S.C. 77a, et seq.), the Securities
Exchange Act of 1934 (15 U.S.C. 78a, et seq.), the Investment Company
Act of 1940 (15 U.S.C. 80a-1, et seq.), the Investment Advisers Act of
1940 (15 U.S.C. 80b-1, et seq.), the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa, et seq.), and the provisions of Rule 2(e) of
the Commission's Rules of Practice (Sec. 201.2(e) of this chapter), to
issue findings and orders taking the remedial action described in the
order for proceedings where the respondents expressly consent to such
action, fail to appear or default in the filing of answers required to
be filed; or to grant a request, based upon a showing of good cause, to
vacate an order of default, so as to permit presentation of a defense.
* * * * *
(5) With respect to proceedings conducted or reviewed pursuant to
the Securities Exchange Act of 1934 (15 U.S.C. 78a, et seq.), the
Investment Company Act of 1940 (15 U.S.C. 80a-1, et seq.), the
Investment Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.), and the
provisions of Rule 2(e) of the Commission's Rules of Practice
(Sec. 201.2(e) of this chapter), to determine applications to stay
Commission orders pending appeal of those orders to the federal courts.
* * * * *
(h) Notwithstanding anything in paragraph (g) of this section, the
functions described in paragraph (g) of this section are not delegated
to the General Counsel with respect to proceedings in which the
Chairman or the General Counsel determines that separation of functions
requirements or other circumstances would make inappropriate the
General Counsel's exercise of such delegated functions. With respect to
such proceedings, such functions are delegated to the Executive
Assistant to the Chairman pursuant to Sec. 200.30-16 of this chapter.
* * * * *
3. Section 200.30-16 is amended by removing paragraph (b), by
redesignating paragraphs (c) and (d) as paragraphs (b) and (c), by
revising the references ``paragraph (d)'' in the introductory text of
this section to read ``paragraph (c)'', and by revising newly
designated paragraphs (b) and (c) to read as follows:
Sec. 200.30-16 Delegation of authority to Executive Assistant to the
Chairman.
* * * * *
(b) Notwithstanding anything in paragraph (a) of this section, in
any proceeding described in paragraph (a) of this section in which the
Executive Assistant believes it appropriate, the Executive Assistant
may submit the matter to the Commission.
(c) Notwithstanding anything in this section, the functions
otherwise delegated to the Executive Assistant respecting any
proceeding in which the Chairman or the Executive Assistant determines
that the Executive Assistant's exercise of such delegated functions
would be inappropriate, are hereby delegated to such person or persons,
not under the Executive Assistant's supervision, as may be designated
by the Chairman.
Dated: July 29, 1994.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19007 Filed 8-3-94; 8:45 am]
BILLING CODE 8010-01-M
