Delegation of Authority to the Director of the Division of Market Regulation

SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 200 [Rel. No. 34–39627] Delegation of Authority to the Director of the Division of Market Regulation AGENCY: Securities and Exchange Commission. ACTION: Final rule. SUMMARY: The Securities and Exchange Commission is amending its Rules of Practice to delegate its authority to the Director of the Division of Market Regulation to grant or deny exemptions from Section 11(d)(1) of the Securities Exchange Act of 1934 pursuant to
Section 36 of the Exchange Act. The
delegation of authority is intended to conserve Commission resources by permitting the staff to review and act on

Federal Register / Vol. 63, No. 32 /Wednesday, February 18, 1998 /Rules and Regulations 8101 1 17 CFR 200.30–3. 2 15 U.S.C. 78k(d)(1) and 78mm. 1Pub. L. No. 104–290, 110 Stat. 3442. 2The Commission also has authority to issue exemptive orders that grant relief from specific provisions of the Exchange Act as well as from specific Commission rules promulgated thereunder. For example, either by rule or by order, the Commission may, pursuant to Section 15(a)(2) of the Exchange Act, conditionally or unconditionally exempt any broker or dealer from the registration provisions of Section 15(a)(1). exemptive applications under Section 36 when appropriate. EFFECTIVE DATE: February 18, 1998. FOR FURTHER INFORMATION CONTACT:
Catherine McGuire, Chief Counsel, or Paul P. Andrews, Special Counsel at (202) 942–0073, Office of Chief Counsel, Division of Market Regulation, Mail Stop 7–11, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. SUPPLEMENTARY INFORMATION:
I. Amendment To Rules of Practice
The Securities and Exchange Commission (‘‘Commission’’) today announces an amendment to its Rules of Practice governing Delegations of Authority to the Director of the Division of Market Regulation (‘‘Director’’).1 The amendment adds to Rule 30–3 a new paragraph (a)(63) authorizing the Director to grant or deny exemptions from Section 11(d)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’), where appropriate, under Section 36 of the Exchange Act.2
Section 36(a) provides that:
Except as provided in subsection (b) [not applicable here], but notwithstanding any other provision of this title, the Commission, by rule, regulation, or order, may conditionally or unconditionally exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision or provisions of this title or of any rule or regulations thereunder, to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection of investors. The delegation of authority to the Director is intended to conserve Commission resources by permitting the staff to review and act on exemptive applications under Section 36(a) when appropriate. Nevertheless, the staff may submit matters to the Commission for consideration as it deems appropriate. In addition, under Section 4A(b) of the Exchange Act, the Commission retains discretionary authority to review, upon its own initiative or upon application by a party adversely affected, any exemption granted or denied by the Division pursuant to delegated authority. Information concerning the filing of exemptive relief applications can be found in Release No. 34–39624; Rule 240.0–12, 17 CFR 240.0–12. The Commission finds, in accordance with Section 553(b)(3)(A) of the Administrative Procedure Act, 5 U.S.C. § 553(b)(3)(A), that this amendment relates to agency organization, procedure, or practice. Accordingly, notice, opportunity for public comment, and publication of the amendment prior to its effective date are unnecessary.
II. List of Subjects in 17 CFR Part 200
Administrative practice and procedure, Authority delegations (Government agencies).
III. 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 general authority citation for
   Part 200 is revised to read 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.

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2. Section 200.30–3 is amended by
   adding paragraph (a)(63) to read as follows:
   200.30–3 Delegation of authority to Director of Division of Market Regulation.

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(a) * * *
(63) Pursuant to section 36 of the Act (15 U.S.C. 78mm) to review and, either unconditionally or on specified terms and conditions, grant or deny exemptions from section 11(d)(1) of the Act (15 U.S.C. 78k(d)(1)).

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By the Commission.
Dated: February 9, 1998.
Margaret H. McFarland, Deputy Secretary. [FR Doc. 98–3932 Filed 2–17–98; 8:45 am] BILLING CODE 8010–01–P