[Federal Register Volume 76, Number 223 (Friday, November 18, 2011)]
[Rules and Regulations]
[Pages 71449-71450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29802]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 76, No. 223 / Friday, November 18, 2011 /
Rules and Regulations
[[Page 71449]]
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 200
[Release No. 34-65742]
Reporting Line for the Commission's Ethics Counsel
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
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SUMMARY: The Securities and Exchange Commission (``Commission'') is
amending its rules to reflect that the Commission's Office of the
Ethics Counsel is now a stand-alone Office of the Commission and that
the head of the Office, the Ethics Counsel, reports directly to the
Chairman of the Commission.
DATES: Effective Date: November 18, 2011.
FOR FURTHER INFORMATION CONTACT: Shira Pavis Minton, Ethics Counsel, at
(202) 551-7938, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549.
SUPPLEMENTARY INFORMATION
I. Discussion
On September 16, 2011, the Commission's Office of the Inspector
General (``OIG'') issued a report recommending, among other things,
that the Commission's Ethics Counsel report directly to the Chairman,
rather than to the General Counsel.\1\ On October 14, 2011, pursuant to
Section 1 of Reorganization Plan No. 10 of 1950,\2\ the Chairman
implemented that recommendation and made the Office of the Ethics
Counsel a stand-alone Office of the Commission.
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\1\ Report of Investigation No. OIG-560, Sept. 16, 2011, pp.
116-117.
\2\ 15 FR 3175, 64 Stat. 1265 (May 24, 1950).
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These amendments conform the Commission's regulations, in part 200
of Title 17 of the Code of Federal Regulations, to the changes to the
reporting line and organization of the Office of the Ethics Counsel.
They do so by removing several references to oversight of the Ethics
Counsel by the General Counsel. In addition, the amendments clarify
that the Ethics Counsel, not the General Counsel, serves as Counselor
to the Commission and its staff with regard to ethical and conflicts of
interest questions and acts as the Commission's liaison on such matters
with the Office of Administrative and Personnel Management, the Office
of the Inspector General and the Department of Justice.
II. Related Matters
A. Administrative Procedure Act and Other Administrative Laws
The Commission has determined that these amendments to its rules
relate solely to the agency's organization, procedure, or practice.
Accordingly, the provisions of the Administrative Procedure Act
regarding notice of proposed rulemaking and opportunity for public
participation are not applicable.\3\ The Regulatory Flexibility Act,
therefore, does not apply.\4\ Because these rules relate solely to the
agency's organization, procedure, or practice and do not substantially
affect the rights or obligations of non-agency parties, they are not
subject to the Small Business Regulatory Enforcement Fairness Act.\5\
Finally, these amendments do not contain any collection of information
requirements as defined by the Paperwork Reduction Act of 1995, as
amended.\6\
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\3\ 5 U.S.C. 553(b).
\4\ 5 U.S.C. 601-612.
\5\ 5 U.S.C. 804.
\6\ 44 U.S.C. 3501-3520.
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B. Cost-Benefit Analysis
The Commission is sensitive to the costs and benefits imposed by
its rules. The amendments adopted today are procedural in nature and
will produce the benefit of conforming the Commission's rules to the
changes to the reporting line and organizational structure of the
Office of the Ethics Counsel. The Commission also believes that these
rules will not impose any costs on non-agency parties, or that if there
are any such costs, they are negligible.
C. Consideration of Burden on Competition
Section 23(a)(2) of the Exchange Act requires the Commission, in
making rules pursuant to any provision of the Exchange Act, to consider
among other matters the impact any such rule would have on competition.
The Commission does not believe that the amendments that the Commission
is adopting today will have any impact on competition.
Statutory Authority
The amendments to the Commission's rules are adopted pursuant to 15
U.S.C. 77o, 77s, 77sss, 78d, 78d-1, 78d-2, 78w, 78ll(d), 78mm, 80a-37,
80b-11, and 7202.
List of Subjects in 17 CFR Part 200
Administrative practice and procedure, Authority delegations
(Government agencies), Organization and functions (Government
agencies).
Text of Amendments
In accordance with the preamble, the Commission hereby amends Title
17, Chapter II of the Code of Federal Regulations as follows:
PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND
REQUESTS
Subpart A--Organization and Program Management
0
1. The authority citation for Part 200, Subpart A, continues to read,
in part, as follows:
Authority: 15 U.S.C. 77o, 77s, 77sss, 78d, 78d-1, 78d-2, 78w,
78ll(d), 78mm, 80a-37, 80b-11, and 7202, unless otherwise noted.
* * * * *
0
2. In Sec. 200.21 paragraph (a), remove the 6th sentence, beginning
with ``He or she is responsible'', and the 7th sentence, beginning with
``He or she serves''.
0
3. In Sec. 200.21a:
0
a. In paragraph (a), remove the phrase ``within the Office of the
General Counsel of the Commission shall oversee compliance with subpart
M of this part and 5 CFR part 2635.'', and add in its place, ``is
responsible for administering the Commission's Ethics Program and for
interpreting subpart M of this part and 5 CFR part 2635. He or she
serves as Counselor to the Commission and its staff with regard to
[[Page 71450]]
ethical and conflicts of interest questions and acts as the
Commission's liaison on such matters with the Office of Administrative
and Personnel Management, the Office of the Inspector General and the
Department of Justice.'';
0
b. In paragraph (b), remove the phrase ``Subject to the oversight of
the General Counsel or his or her delegate, the'' and add in its place
the word ``The'';
Subpart M--Regulation Concerning Conduct of Members and Employees
and Former Members and Employees of the Commission
0
4. The authority citation for Part 200, Subpart M, continues to read as
follows:
Authority: 15 U.S.C. 77s, 77sss, 78w, 80a-37, 80b-11; E.O.
11222, 3 CFR, 1964-1965 Comp., p. 36; 5 CFR 735.104 and 5 CFR 2634;
and 5 CFR 2635, unless otherwise noted.
0
5. In Sec. 200.735-11, remove the words ``Commission's Office of the
General Counsel's'' in paragraphs (c), (d) and (e);
0
6. In Sec. 200.735-15:
0
(a) In paragraphs (a), (b), (c), and (d), remove the words ``General
Counsel'' wherever they appear and add in their place the words
``Ethics Counsel'';
0
(b) In paragraphs (b), (e), and (f), remove the phrase ``Commission's
Office of the General Counsel's''.
0
7. In Sec. 200.735-17, remove the phrase ``Under the general direction
of the General Counsel, the'', and add in its place the word ``The''.
Dated: November 14, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-29802 Filed 11-17-11; 8:45 am]
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