[Federal Register Volume 77, Number 30 (Tuesday, February 14, 2012)]
[Rules and Regulations]
[Pages 8094-8095]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-3312]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 200

[Release No. 34-66355]


Reporting Line for the Commission's Inspector General

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

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SUMMARY: The Securities and Exchange Commission (``Commission'') is 
amending its rules to conform them to amendments made to the Inspector 
General Act of 1978 that require the Commission's Inspector General to 
report to and be under the general supervision of the full Commission.

DATES: Effective Date: February 14, 2012.

FOR FURTHER INFORMATION CONTACT: Mary Beth Sullivan, Counsel, Office of 
the Inspector General, at (202) 551-6039, Securities and Exchange 
Commission, 100 F Street NE., Washington, DC 20549.

SUPPLEMENTARY INFORMATION:

I. Discussion

    Section 8G(d)(1) of the Inspector General Act of 1978 (``IG Act'') 
\1\ provides: ``Each Inspector General shall report to and be under the 
general supervision of the head of the designated Federal entity, but 
shall not report to, or be subject to supervision by, any other officer 
or employee of such designated Federal entity.'' Prior to the Dodd-
Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank 
Act''),\2\ section 8G(a)(4) of the IG Act defined the ``head of the 
designated Federal entity'' to mean, unless specifically designated by 
statute, the chief policymaking officer or board of the designated 
Federal entity as identified in a list published annually by the 
Director of the Office of Management and Budget (``OMB''). OMB's annual 
lists identified the ``Chairperson'' as the head of the SEC. Section 
989B of the Dodd-Frank Act amended the IG Act to provide that the 
``head of the designated Federal entity'' with a board or commission 
(such as the SEC) means ``the board or commission of the designated 
Federal entity * * * .'' Accordingly, the Inspector General must now 
report to, and be under the general supervision of, the full 
Commission.
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    \1\ Public Law 95-452; 92 Stat. 1101 (1978), as amended.
    \2\ Public Law 111-203; 124 Stat. 1376 (2010).
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    These amendments conform the Commission's rules that address the 
reporting line of the Commission's Inspector General to the amendments 
made by the Dodd-Frank Act to the IG Act by replacing references to the 
``Chairman'' in these rules with references to the ``Commission''.

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 
amendments made to the IG Act that require the Commission's Inspector 
General to report to and be under the general supervision of the full 
Commission. The Commission also believes that these amendments 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

[[Page 8095]]

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. 77s, 78d, 78d-1, 78d-2, 78w, 78mm, 
80a-37, 80b-11, and 7202; 5 U.S.C. App. (Inspector General Act of 
1978) Sec.  8G; and Sec.  989B of Pub. L. 111-203 (2010).

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, is amended by adding 
the following citation, in numerical order, to read 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.
    Section 200.16a is also issued under Sec. 989B of Pub. L. 111-
203 (2010), 124 Stat. 1376; and 5 U.S.C. App. (Inspector General Act 
of 1978) Sec. 8G.

* * * * *

0
2. Sec.  200.16a is amended by removing the word ``Chairman'' and 
adding in its place the word ``Commission'' in paragraphs (b) and (c) 
wherever it appears.

    Dated: February 8, 2012.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-3312 Filed 2-13-12; 8:45 am]
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