[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