[Federal Register Volume 65, Number 47 (Thursday, March 9, 2000)]
[Rules and Regulations]
[Page 12469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5756]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-42488]


Delegation of Authority to the Office of the General Counsel

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Commission is amending its rules to delegate to the 
General Counsel its authority to initiate proceedings under Section 
21(e)(1) of the Securities Exchange Act of 1934 to enforce Commission 
orders, including Commission orders affirming self-regulatory 
organization sanctions, when the General Counsel determines such a 
proceeding is appropriate. This delegation would spare the 
Commissioners and their staff from having to review matters in which 
the Commission has already issued an order and which are 
noncontroversial and implicate no policy issues. The effect would be to 
allow the staff to bring proceedings more expeditiously and to promote 
efficiency in the enforcement of Commission orders.

EFFECTIVE DATE: March 9, 2000.

FOR FURTHER INFORMATION CONTACT: Melinda Hardy, Assistant General 
Counsel, (202) 942-0877.

SUPPLEMENTARY INFORMATION: Section 21(e)(1) of the Securities Exchange 
Act of 1934 (``Exchange Act'') authorizes the Commission to apply to 
the district courts of the United States for orders commanding any 
person to comply with orders issued pursuant to the Exchange Act. Thus, 
Section 21(e)(1) authorizes the Commission to seek court orders 
requiring, among other things, payment of unpaid self-regulatory 
organization sanctions where the Commission has entered an order 
affirming that sanction. See Lang v. French, 154 F.3d 217, 222 (5th 
Cir. 1998).
    The Commission is delegating to the General Counsel the authority 
to determine when to initiate actions under Section 21(e)(1) to enforce 
Commission-affirmed SRO sanctions and other sanctions because the 
decision to initiate such an action will rarely involve policy issues 
or be controversial. Actions under Section 21(e)(1) will necessarily 
follow a Commission order affirming or imposing a sanction, so Section 
21(e)(1) actions will concern primarily the simple issue of whether a 
person has complied with the order. The staff may submit matters to the 
Commission for consideration as it deems appropriate.
    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 practices. It is 
therefore not subject to the provisions of the Administrative Procedure 
Act requiring notice and opportunity for comment. Accordingly, it is 
effective March 9, 2000.

List of Subjects in 17 CFR Part 200

    Administrative practice and procedure, Authority delegations 
(Government agencies).

Text of Amendment

    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, 78ll(d), 78mm, 79t, 
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *

    2. Section 200.30-14 is amended by adding paragraph (l) to read as 
follows:


Sec. 200.30-14  Delegation of authority to the General Counsel.

* * * * *
    (l) File applications in district court under Section 21(e)(1) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78u(e)(1)) to obtain 
orders commanding persons to comply with Commission orders.

    Dated: March 2, 2000.
    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-5756 Filed 3-8-00; 8:45 am]
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