Rule2025-04064
Delegation of Authority to Director of the Division of Enforcement
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 14, 2025
Effective
March 14, 2025
Issuing agencies
Securities and Exchange Commission
Abstract
The Securities and Exchange Commission ("Commission") is amending its regulations with respect to the delegations of authority to the Director of the Division of Enforcement ("Director") to eliminate the delegation of authority to issue formal orders of investigation. Formal orders designate the enforcement staff authorized to issue subpoenas in connection with investigations under the Federal securities laws. This amendment is the result of the Commission's experience with its nonpublic investigations. The amendment is intended to increase effectiveness by more closely aligning the Commission's use of its investigative resources with Commission priorities.
Full Text
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<title>Federal Register, Volume 90 Issue 49 (Friday, March 14, 2025)</title>
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[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Rules and Regulations]
[Pages 12105-12106]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04064]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 200
[Release No. 33-11366; 34-102552; IA-6862; IC-35492]
Delegation of Authority to Director of the Division of
Enforcement
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
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SUMMARY: The Securities and Exchange Commission (``Commission'') is
amending its regulations with respect to the delegations of authority
to the Director of the Division of Enforcement (``Director'') to
eliminate the delegation of authority to issue formal orders of
investigation. Formal orders designate the enforcement staff authorized
to issue subpoenas in connection with investigations under the Federal
securities laws. This amendment is the result of the Commission's
experience with its nonpublic investigations. The amendment is intended
to increase effectiveness by more closely aligning the Commission's use
of its investigative resources with Commission priorities.
DATES: Effective March 14, 2025.
FOR FURTHER INFORMATION CONTACT: Charlotte Buford, Deputy Chief
Counsel, at (202) 551-4843, Division of Enforcement, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549-6553.
SUPPLEMENTARY INFORMATION:
Background
As a result of its experience with its nonpublic investigations,
the Commission is amending its delegations of authority to the Director
to eliminate the delegation of authority to issue formal orders of
investigation.\1\ The Commission is authorized to conduct
investigations concerning possible violations of the Federal securities
laws, which provide that ``any member of the Commission or any officer
designated by it is empowered to administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence, and require
the production of any books, papers, correspondence, memoranda, or
other records which the Commission deems relevant or material to the
inquiry.'' Section 21(b) of the Securities Exchange Act of 1934, 15
U.S.C. 78u(b). See also section 19(c) of the Securities Act of 1933, 15
U.S.C. 77s(c); section 42(b) of the Investment Company Act of 1940, 15
U.S.C. 80a-41(b); and section 209(b) of the Investment Advisers Act of
1940, 15 U.S.C. 80b-9(b). The Commission issues
[[Page 12106]]
formal orders of investigation that authorize specifically-designated
enforcement staff to exercise the Commission's statutory power to
subpoena witnesses and take the other actions authorized by the
relevant cited provisions.
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\1\ See 17 CFR 200.30-4(a)(13). Congress has authorized such
delegation by Public Law 87-592, 76 Stat. 394, 15 U.S.C. 78d-1(a),
which provides that the Commission ``shall have the authority to
delegate, by published order or rule, any of its functions to . . .
an employee or employee board, including functions with respect to
hearing, determining, ordering, certifying, reporting, or otherwise
acting as to any work, business or matter.''
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The Commission delegated authority to issue formal orders of
investigation to the Director on August 11, 2009. ``Delegation of
Authority to Director of Division of Enforcement,'' 74 FR 40068-01
(Aug. 11, 2009). The delegation was made effective for a one-year
period, ending on August 11, 2010, to allow Commission review of the
Division's exercise of formal order authority. On August 16, 2010, the
Commission amended its rules to extend the Director's delegated
authority to issue formal orders of investigation beyond the one-year
period. ``Delegation of Authority to the Director of Its Division of
Enforcement,'' 75 FR 49820-01 (Aug. 16, 2010); see also 17 CFR 200.30-
4(a)(13). The amendment will delete this delegation provision, 17 CFR
200.30-4(a)(13), to more closely align the Commission's use of its
investigative resources with Commission priorities.
Administrative Law Matters
The Commission finds, in accordance with the Administrative
Procedure Act (``APA''), that this amendment relates solely to agency
organization, procedure, or practice. 5 U.S.C. 553(b)(A). Accordingly,
the APA's provisions regarding notice of rulemaking and opportunity for
public comment are not applicable. In accord with the APA, we find that
there is good cause to establish an effective date less than 30 days
after publication of this amendment. 5 U.S.C. 553(d). This amendment
does not substantially affect the rights or obligations of non-agency
parties and pertains to increasing efficiency of internal Commission
operations. This amendment is therefore effective on March 14, 2025.
For the same reasons, the provisions of the Small Business Regulatory
Enforcement Fairness Act are not applicable. See 5 U.S.C. 804(3)(C)
(the term ``rule'' does not include ``any rule of agency organization,
procedure, or practice that does not substantially affect the rights or
obligations of non-agency parties''). Additionally, the provisions of
the Regulatory Flexibility Act, 5 U.S.C. 60 et seq., which apply only
when notice and comment are required by the APA or other law, are not
applicable. See 5 U.S.C. 601(2). This amendment does not contain any
collection of information requirements as defined by the Paperwork
Reduction Act of 1995. See 5 CFR 1320.3(c). Further, because this
amendment imposes no new burdens on private parties, the Commission
does not believe that the amendment will have any impact on competition
for purposes of section 23(a)(2) of the Securities Exchange Act of
1934. 15 U.S.C. 78w(a)(2).
Statutory Authority
The amendment contained in this release is being adopted pursuant
to statutory authority granted to the Commission, including section 19
of the Securities Act of 1933, 15 U.S.C. 77s; sections 4A, 4B, and 23
of the Securities Exchange Act of 1934, 15 U.S.C. 78d-1, 78d-2, and
78w; section 38 of the Investment Company Act, 15 U.S.C. 80a-37;
section 211 of the Investment Advisers Act, 15 U.S.C. 80b-11; and
section 3 of the Sarbanes-Oxley Act, 15 U.S.C. 7202.
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, the Commission is amending
17 CFR part 200 as follows:
PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND
REQUESTS
0
1. The authority citation for part 200 continues to read as follows:
Authority: 5 U.S.C. 552, 552a, 552b, and 557; 11 U.S.C. 901 and
1109(a); 15 U.S.C. 77c, 77e, 77f, 77g, 77h, 77j, 77o, 77q, 77s, 77u,
77z-3, 77ggg(a), 77hhh, 77sss, 77uuu, 78b, 78c(b), 78d, 78d-1, 78d-
2, 78e, 78f, 78g, 78h, 78i, 78k, 78k-1, 78l, 78m, 78n, 78o, 78o-4,
78q, 78q-1, 78t-1, 78u, 78w, 78ll(d), 78mm, 78eee, 80a-8, 80a-20,
80a-24, 80a-29, 80a-37, 80a-41, 80a-44(a), 80a-44(b), 80b-3, 80b-4,
80b-5, 80b-9, 80b-10(a), 80b-11, 7202, and 7211 et seq.; 29 U.S.C.
794; 44 U.S.C. 3506 and 3507; Reorganization Plan No. 10 of 1950 (15
U.S.C. 78d); sec. 8G, Pub. L. 95-452, 92 Stat. 1101 (5 U.S.C. App.);
sec. 913, Pub. L. 111-203, 124 Stat. 1376, 1827; sec. 3(a), Pub. L.
114-185, 130 Stat. 538; E.O. 11222, 30 FR 6469, 3 CFR, 1964-1965
Comp., p. 36; E.O. 12356, 47 FR 14874, 3 CFR, 1982 Comp., p. 166;
E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 235; Information
Security Oversight Office Directive No. 1, 47 FR 27836; and 5 CFR
735.104 and 5 CFR parts 2634 and 2635, unless otherwise noted.
Sec. 200.30-4 [Amended]
0
2. Section 200.30-4 is amended by removing and reserving paragraph
(a)(13).
By the Commission.
Dated: March 10, 2025.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-04064 Filed 3-13-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on March 14, 2025.
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