[Federal Register: February 18, 1998 (Volume 63, Number 32)]
[Rules and Regulations]               
[Page 8100-8101]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18fe98-21]

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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.

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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

[[Page 8101]]

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'').<SUP>1</SUP> 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.<SUP>2</SUP>
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    \1\ 17 CFR 200.30-3.
    \2\ 15 U.S.C. 78k(d)(1) and 78mm.
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    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. Sec. 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.
* * * * *
    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.

* * * * *
    (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)).
* * * * *
    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