Securities and Exchange Commission Delegation of Authority

SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 200 [Release No. 34–35151] Delegation of Authority AGENCY: Securities and Exchange Commission. ACTION: Final rule. SUMMARY: The Securities and Exchange Commission (‘‘Commission’’) is amending Rule 30–3 of the Rules of Practice and Investigations to delegate to the Director of the Division of Market Regulation (‘‘Division’’) certain functions relating to proposed bylaw and rule changes filed by the Securities Investor Protection Corporation (‘‘SIPC’’). This amendment is intended to conserve the Commission’s resources and to relieve the Commission of the burden of considering routine matters relating to SIPC’s operation. EFFECTIVE DATE: January 3, 1995. FOR FURTHER INFORMATION CONTACT:
Michael A. Macchiaroli, 202/942–0132, Harry Melamed, 202/942–0134, or Elizabeth K. King, 202/942–0140. SUPPLEMENTARY INFORMATION:
I. Introduction
Sections 3(e)(1) and 3(e)(2) of the Securities Investor Protection Act of 1970 (‘‘SIPA’’) require SIPC to file proposed bylaw and rule amendments with the Commission, and require, among other things, the Commission to publish proposed rule amendments and certain proposed bylaw amendments. Because most proposed bylaw amendments are routine and do not merit the Commissions’s attention, and because publication of proposed rule changes, along with certain proposed bylaw changes, is statutorily required, the Commission is delegating certain of the functions relating to the proposed bylaw and rule change filings to the Director of the Division.
II. Requirement Under SIPA Regarding
Bylaw and Rule Changes Proposed by SIPC
Section 3(e)(1) of SIPA requires SIPC
to file any proposed bylaw change with the Commission. Such a proposed bylaw amendment becomes effective thirty days after the date it is filed, unless the Commission either notifies SIPC that it disapproves the proposed bylaw change as being contrary to the public interest or to the purposes of SIPA, or that it has found that the proposed bylaw change involves matters of significant public interest. The Commission also has the authority to designate an effective date earlier than 30 days after filing. In those instances in which the Commission notifies SIPC that the proposed bylaw amendment involves matters of significant public interest, the Commission may, in accordance with the procedures set forth in section 3(e)(2) of SIPA, publish notice of the proposed bylaw amendment and provide opportunity for public comment. After public comment, the proposed bylaw change becomes effective only after it is approved by the Commission, or otherwise is permitted to become effective under section 3(e)(2) of SIPA. SIPC, under section 3(e)(2) of SIPA, also must file proposed rule amendments with the Commission. The Commission is required to publish notices of proposed rule amendments and provide an opportunity for the public to comment. The proposed rule change may not take effect unless it is approved by the Commission, or otherwise is permitted to become effective under section 3(e)(2) of SIPA.

6 Federal Register / Vol. 60, No. 1 / Tuesday, January 3, 1995 / Rules and Regulations 1 17 CFR 200.30–3. 2 15 U.S.C. § 553(b)(A).
III. Delegation of Authority to the
Director of the Division of Market Regulation In the absence of a delegation of authority, the Commission is required to consider each bylaw and rule change proposed by SIPC. In order to relieve the Commission from the burden of considering routine matters regarding the operation of SIPC, the Commission is delegating certain of its authority under sections 3(e)(1) and (3)(e)(2) of SIPA to the Director of the Division. Specifically, the Commission is delegating its authority under section 3(e)(1) to the Director of the Division to make a determination, and to notify SIPC of this determination, as to whether a proposed bylaw change (i) should not be disapproved and, therefore, become effective 30 days after filing or (ii) involves matters of such significant public interest that public comment should be obtained. In addition, the Commission is delegating authority to the Director of the Division to accelerate the effective date of a bylaw change. Finally, the Commission is delegating its authority to publish for comment, in accordance with section 3(e)(2) of SIPA, those proposed bylaw changes determined to be matters of significant public interest, as well as all proposed rule changes. The Commission, however, will retain its authority to approve proposed bylaw and rule amendments after the comment period is completed. Accordingly, the Commission is amending Rule 30–3 of the Rules of Practice and Investigations (‘‘Rule 30– 3’’).1 Notwithstanding these delegations of authority, the Division will bring any significant proposed bylaw or rule amendments to the Commission’s attention for its consideration. The Commission finds, in accordance with section 553(b)(A) of the Administrative Procedures Act,2 that these amendments relate solely to agency organization and procedure, and do not relate to a substantive rule. Accordingly, notice and opportunity for public comment are unnecessary, and publication of the amendment 30 days before its effective date also is unnecessary.
IV. Statutory Basis and Text of
Amendments
List of Subjects in 17 CFR Part 200 Administrative practice and procedure, Authority delegations (Government agencies), Organizations and functions (Government organizations). In accordance with the foregoing, Title 17, Chapter II of the Code of Federal Regulations is amended as follows:
PART 200—ORGANIZATION;
CONDUCT AND ETHICS; AND INFORMATION REQUESTS Subpart A—Organization and Program Management

1. The authority citation for Part 200,
   Subpart A continues, in part, to read as follows:
   Authority: 15 U.S.C. 77s, 78d–1, 78d–2, 78w, 78ll(d), 79t, 77sss, 80a–37, 80b–11, unless otherwise noted.

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2. Section 200.30–3 is amended by
   revising paragraph (f) to read as follows:
   § 200.30–3 Delegation of authority to director of division of market regulation.

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(f) With respect to the Securities Investor Protection Act of 1970, as amended, 15 U.S.C. 78aaa, et seq. (‘‘SIPA’’):
(1) Pursuant to Section 3(a)(2)(B) of SIPA, to:
(i) Extend for a period not exceeding 90 days from the date of the filing of the determination by the Securities Investor Protection Corporation (‘‘SIPC’’) that a registered broker-dealer is not a SIPC member because it conducts its principal business outside the United States and its territories and possessions, the period during which the Commission must affirm, reverse or amend any determination by SIPC; and (ii) Affirm such determination filed by SIPC. (2) Pursuant to Section (3)(e)(1) of SIPA, to:
(i) Determine whether proposed bylaw changes filed by SIPC should not be disapproved or whether the proposed bylaw change is a matter of such significant public interest that public comment should be obtained, in which case the Division will notify SIPC of such finding and publish notice of the proposed bylaw change in accordance with Section 3(e)(2) of SIPA; and (ii) Accelerate the effective date of proposed bylaw changes filed by SIPC. (3) Pursuant to Section (3)(e)(2) of SIPA, to publish notice of proposed rule changes filed by SIPC. By the Commission. Dated: December 27, 1994. Margaret H. McFarland, Deputy Secretary. [FR Doc. 94–32250 Filed 12–30–94; 8:45 am] BILLING CODE 8010–01–M