[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