[Federal Register Volume 67, Number 170 (Tuesday, September 3, 2002)]
[Rules and Regulations]
[Pages 56219-56220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22302]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-46418]


Delegation of Authority to the General Counsel of the Commission

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Securities and Exchange Commission (``Commission'') is 
amending its rules to delegate authority to the General Counsel to 
issue orders raising in any Commission-instituted proceeding the matter 
of whether any sanction, and if so what sanction, should be imposed in 
the public interest. This delegation is intended to conserve Commission 
resources, as well as expedite the resolution of reviews of those 
proceedings.

EFFECTIVE DATE: Sepetmber 3, 2002.

FOR FURTHER INFORMATION CONTACT: Joan Loizeaux, Office of the General 
Counsel, at (202) 942-0990, Securities and Exchange Commission, 450 5th 
Street, NW., Washington, DC 20549-0208.

SUPPLEMENTARY INFORMATION: The Commission today is amending its rules 
governing delegation of authority to the General Counsel. The 
Securities Act of 1933,\1\ Securities Exchange Act of 1934,\2\ 
Investment Advisers Act of 1940,\3\ the Investment Company Act of 
1940,\4\ the Securities Investor Protection Act of 1970,\5\ and rule of 
practice 102(e) \6\ authorize the Commission to institute 
administrative proceedings, which, under appropriate circumstances, can 
result in the imposition of sanctions. The Commission wishes to provide 
prompt notice to the parties that it may review sanctions imposed in 
initial decisions in such proceedings with a view to making an 
independent assessment of what sanctions, if any, are in the public 
interest.
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    \1\ 15 U.S.C. 77a, et seq.
    \2\ 15 U.S.C. 78a, et seq.
    \3\ 15 U.S.C. 80b-1, et seq.
    \4\ 15 U.S.C. 80a-1, et seq.
    \5\ 15 U.S.C. 78aaa, et seq.
    \6\ 17 CFR 201.102(e).
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    Commission rule of practice 411(d) \7\ authorizes the Commission, 
prior to the issuance of a decision, to raise and determine any matters 
that it deems material. The Commission therefore is amending its rules 
to delegate to the General Counsel the authority to issue orders, 
pursuant to rule of practice 411(d), that would take up the issue of 
whether any sanction, and if so what sanction, is appropriate in the 
public interest. In any case in which the General Counsel believes it 
appropriate, he or she may submit the matter to the Commission for 
consideration.
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    \7\ 17 CFR 201.411(d).
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Administrative Law Matters

    The Commission finds, in accordance with section 533(b)(A) of the 
Administrative Procedure Act, 5 U.S.C. 553(b)(A), that this amendment 
relates solely to agency organization, procedure, or practice. 
Accordingly, notice and opportunity for public comment, as well as 
publication 30 days before its effective date, are unnecessary. Because 
notice and comment are not required for this final rule, a regulatory 
flexibility analysis is not required under the Regulatory Flexibility 
Act.\8\
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    \8\ See 5 U.S.C. 603.
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    The rule does not contain any collection of information 
requirements as defined by the Paperwork Reduction

[[Page 56220]]

Act of 1995, as amended.\9\ The rule will not impose any costs on the 
public.
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    \9\ 44 U.S.C. 3501 et seq.
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List of Subjects in 17 CFR Part 200

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

Text of the 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 (g)(1)(xv) to 
read as follows:


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

* * * * *
    (g)(1) * * *
    (xv) To issue an order raising, pursuant to the provisions of Rule 
411(d) of the Commission's Rules of Practice, Sec. 201.411(d) of this 
chapter, any matter relating to whether any sanction, and if so what 
sanction, is in the public interest.
* * * * *

    Dated: August 27, 2002.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-22302 Filed 8-30-02; 8:45 am]
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