Rescission of Rules Pertaining to the Payment of Bounties for Information Leading to the Recovery of Civil Penalties for Insider Trading, 57384-57385 [2010-23457]

Download as PDF 57384 Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations effort by submitting written comments on the proposal to the FAA. No comments were received. Class E airspace designations are published in paragraph 6005 of FAA Order 7400.9U dated August 18, 2010, and effective September 15, 2010, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designations listed in this document will be published subsequently in that Order. hsrobinson on DSK69SOYB1PROD with RULES The Rule This action amends Title 14 Code of Federal Regulations (14 CFR) part 71 by amending Class E airspace extending upward from 700 feet above the surface, at Cochise County Airport, to accommodate IFR aircraft executing new RNAV (GPS) SIAPs at the airport. This action is necessary for the safety and management of IFR operations. The FAA has determined this regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. Therefore, this regulation: (1) Is not a ‘‘significant regulatory action’’ under Executive Order 12866; (2) is not a ‘‘significant rule’’ under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified this rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. The FAA’s authority to issue rules regarding aviation safety is found in Title 49 of the U.S. Code. Subtitle 1, section 106 discusses the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. This rulemaking is promulgated under the authority described in subtitle VII, part A, subpart I, section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it establishes additional controlled airspace at Cochise County Airport, Willcox, AZ. Adoption of the Amendment In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 71 as follows: ■ SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 201 [Release No. 34–62921] PART 71—DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS Rescission of Rules Pertaining to the Payment of Bounties for Information Leading to the Recovery of Civil Penalties for Insider Trading 1. The authority citation for 14 CFR part 71 continues to read as follows: AGENCY: ■ Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E. O. 10854, 24 FR 9565, 3 CFR, 1959– 1963 Comp., p. 389. § 71.1 [Amended] 2. The incorporation by reference in 14 CFR 71.1 of the Federal Aviation Administration Order 7400.9U, Airspace Designations and Reporting Points, dated August 18, 2010, and effective September 15, 2010 is amended as follows: ■ Paragraph 6005 Class E airspace areas extending upward from 700 feet or more above the surface of the earth. * * * AWP AZ E5 * * Willcox, AZ [Modified] Cochise County Airport, AZ (Lat. 32°14′44″ N., long. 109°53′41″ W.) That airspace extending upward from 700 feet above the surface within 6.5-mile radius of the Cochise County Airport and within 5 miles each side of the 225° bearing from the Cochise County Airport extending from the 6.5-mile radius to 14.5 miles southwest of the Cochise County Airport, and within 5.5 miles southeast and 4.5 miles northwest of the 055° bearing from the Cochise County Airport extending from the 6.5-mile radius to 14.5 miles northeast of the Cochise County Airport; that airspace extending upward from 1,200 feet above the surface bounded on the north by lat. 32°22′40″ N., long. 109°25′00″ W.; to lat. 32°14′30″ N., long. 109°28′00″ W.; to lat. 32°21′20″ N., long. 109°58′00″ W.; to lat. 32°30′00″ N., long. 109°54′00″ W.; thence to point of beginning. Issued in Seattle, Washington, on August 30, 2010. John Warner, Manager, Operations Support Group, Western Service Center. [FR Doc. 2010–23394 Filed 9–20–10; 8:45 am] BILLING CODE 4910–13–P Securities and Exchange Commission. ACTION: Final rule. The Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) 1 repealed former Section 21A(e) of the Securities Exchange Act of 1934, which had authorized the Securities and Exchange Commission (‘‘Commission’’) to make monetary awards to persons who provided information leading to the recovery of civil penalties for insider trading violations. Because the statutory basis for the insider trading bounty program has been removed, the Commission is rescinding rules promulgated to administer the program. DATES: Effective Date: September 21, 2010. SUMMARY: FOR FURTHER INFORMATION CONTACT: Kenneth H. Hall, Assistant Chief Counsel, (202) 551–4936, Office of Chief Counsel, Division of Enforcement, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–6553. SUPPLEMENTARY INFORMATION: The Insider Trading and Securities Fraud Enforcement Act of 1988 authorized the Commission to award bounties to persons who provided information leading to the recovery of civil penalties for insider trading violations; the bounty provision was codified as former Section 21A(e) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’). In 1989, the Commission adopted procedural rules to administer the insider trading bounty program. See Applications for Bounty Awards on Civil Penalties Imposed in Insider Trading Litigation, Exchange Act Release No. 26994 (June 30, 1989). The Dodd-Frank Act created a new and broader program for making monetary awards to whistleblowers, codified as Section 21F of the Exchange Act.2 Under the new whistleblower program, the Commission is authorized to make awards to persons who voluntarily provide the Commission List of Subjects in 14 CFR Part 71 1 Public Law 111–203, 124 Stat. 1376 (July 21, 2010). 2 Section 922 of the Dodd-Frank Act. Airspace, Incorporation by reference, Navigation (air). VerDate Mar<15>2010 16:05 Sep 20, 2010 Jkt 220001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Rules and Regulations with ‘‘original information’’ about a violation of the Federal securities laws that leads to the successful enforcement of a ‘‘covered judicial or administrative action,’’ or a ‘‘related action,’’ as those terms are defined by the Dodd-Frank Act. Unlike the insider trading bounty program, awards may be paid in connection with original information concerning any violation of the Federal securities laws. Awards may range from 10 to 30 percent of the amounts collected as monetary sanctions imposed in the covered judicial or administrative action or related actions. In connection with enactment of the new whistleblower provision, Congress repealed Section 21A(e).3 Because that statutory provision is no longer available as a basis for awarding bounties in insider trading cases, the Commission is rescinding its rules for administration of the insider trading bounty program. Procedural and Other Matters The Administrative Procedure Act (‘‘APA’’) generally requires an agency to publish notice of a proposed rulemaking in the Federal Register.4 This requirement does not apply, however, if the agency ‘‘for good cause’’ finds * * * that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 5 Because the statutory authority for the insider trading bounty program has been repealed, the Commission is removing the rules administering the program from the Federal Register. These rules no longer have any practical effect, and their continued inclusion in the Federal Register might lead to public confusion. For these reasons, the Commission finds that good cause exists to dispense with public notice and comment because notice and comment would be unnecessary, impracticable and contrary to the public interest.6 For similar reasons the Commission finds good cause for this action to be effective immediately.7 Section 23(a)(2) of the Exchange Act requires the Commission to consider the competitive effects of rulemaking under the Exchange Act. Further, Section 3(f) of the Exchange Act requires us, when hsrobinson on DSK69SOYB1PROD with RULES 3 Section 923(b) of the Dodd-Frank Act. 4 See 5 U.S.C. 553(b). 5 5 U.S.C. 553(b). 6 Similarly, the amendments do not require analysis under the Regulatory Flexibility Act. See 5 U.S.C. 601(2) and 603(a) (for purposes of Regulatory Flexibility Act analysis, the term ‘‘rule’’ means any rule for which the agency publishes a general notice of proposed rulemaking). 7 Additionally, this finding satisfies the requirements for immediate effectiveness under the Small Business Regulatory Enforcement Fairness Act. See 5 U.S.C. 808(2); see also 5 U.S.C. 801(a)(4). VerDate Mar<15>2010 16:05 Sep 20, 2010 Jkt 220001 engaging in rulemaking where we are required to consider or determine whether an action is necessary or appropriate in the public interest, to consider, in addition to the protection of investors, whether the action will promote efficiency, competition, and capital formation. Because Congress has repealed the insider trading bounty program, our removal of the procedural rules related to that program will not create any competitive advantages or disadvantages, or affect efficiency, competition, and capital formation. Statutory Authority and Text of Amendments The Commission is removing regulations pursuant to authority provided by Section 23(a) of the Exchange Act. List of Subjects in 17 CFR Part 201 Administrative practice and procedure. Text of Amendments For the reasons set out in the preamble, Title 17, Chapter II of the Code of Federal Regulations is amended as follows: ■ PART 201—RULES OF PRACTICE 1. The authority citation for part 201 continues to read as follows: ■ Authority: 15 U.S.C. 77s, 77sss, 78w, 78x, 80a–37, and 80b–11; 5 U.S.C. 504(c)(1). Subpart C—[Removed and Reserved] ■ 2. Remove and reserve Subpart C. Dated: September 15, 2010. By the Commission. Elizabeth M. Murphy, Secretary. [FR Doc. 2010–23457 Filed 9–20–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 210, 229, and 249 [Release Nos. 33–9142; 34–62914] Internal Control Over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers Securities and Exchange Commission. ACTION: Final rule. AGENCY: The Securities and Exchange Commission (‘‘Commission’’) is adopting amendments to its rules and forms to conform them to Section 404(c) of the Sarbanes-Oxley Act of 2002 (the SUMMARY: PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 57385 ‘‘Sarbanes-Oxley Act’’), as added by Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘‘Dodd-Frank Act’’). Section 404(c) provides that Section 404(b) of the Sarbanes-Oxley Act shall not apply with respect to any audit report prepared for an issuer that is neither an accelerated filer nor a large accelerated filer as defined in Rule 12b–2 under the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’). DATES: Effective Date: September 21, 2010. FOR FURTHER INFORMATION CONTACT: Steven G. Hearne, Special Counsel, Office of Rulemaking, Division of Corporation Finance, at (202) 551–3430, Steven Jacobs, Associate Chief Accountant, Division of Corporation Finance, at (202) 551–3400, or John Offenbacher, Senior Associate Chief Accountant, or Annemarie Ettinger, Senior Special Counsel, Office of the Chief Accountant, at (202) 551–5300, U.S. Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549. SUPPLEMENTARY INFORMATION: We are adopting conforming amendments to Rule 2–021 of Regulation S–X,2 Item 308 3 of Regulation S–K,4 Item 15 of Form 20–F,5 and General Instruction B.(6) of Form 40–F.6 I. Description of Amendments The Commission is adopting amendments to its rules and forms to conform them to new Section 404(c) of the Sarbanes-Oxley Act,7 as added by Section 989G of the Dodd-Frank Act.8 Section 404(c) provides that Section 404(b) of the Sarbanes-Oxley Act shall not apply with respect to any audit report prepared for an issuer that is neither an accelerated filer nor a large accelerated filer as defined in Rule 12b– 29 under the Exchange Act.10 Prior to enactment of the Dodd-Frank Act, a non-accelerated filer 11 would have been 1 17 CFR 210.2–02. CFR part 210. 3 17 CFR 229.308. 4 17 CFR part 229. 5 17 CFR 249.220f. 6 17 CFR 249.240f. 7 15 U.S.C. 7201 et seq. 8 Public Law 111–203 (July 21, 2010). 9 17 CFR 240.12b–2. 10 15 U.S.C. 78a et seq. 11 Although the term ‘‘non-accelerated filer’’ is not defined in Commission rules, we use it throughout this release to refer to a reporting company that does not meet the definition of either an ‘‘accelerated filer’’ or a ‘‘large accelerated filer’’ under Exchange Act Rule 12b–2. Under Exchange Act Rule 12b–2, an accelerated filer is an issuer that ‘‘had an aggregate worldwide market value of the voting and non-voting common equity held by its 2 17 E:\FR\FM\21SER1.SGM Continued 21SER1

Agencies

[Federal Register Volume 75, Number 182 (Tuesday, September 21, 2010)]
[Rules and Regulations]
[Pages 57384-57385]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-23457]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 201

[Release No. 34-62921]


Rescission of Rules Pertaining to the Payment of Bounties for 
Information Leading to the Recovery of Civil Penalties for Insider 
Trading

AGENCY: Securities and Exchange Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act'') \1\ repealed former Section 21A(e) of the 
Securities Exchange Act of 1934, which had authorized the Securities 
and Exchange Commission (``Commission'') to make monetary awards to 
persons who provided information leading to the recovery of civil 
penalties for insider trading violations. Because the statutory basis 
for the insider trading bounty program has been removed, the Commission 
is rescinding rules promulgated to administer the program.
---------------------------------------------------------------------------

    \1\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).

---------------------------------------------------------------------------
DATES: Effective Date: September 21, 2010.

FOR FURTHER INFORMATION CONTACT: Kenneth H. Hall, Assistant Chief 
Counsel, (202) 551-4936, Office of Chief Counsel, Division of 
Enforcement, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-6553.

SUPPLEMENTARY INFORMATION: The Insider Trading and Securities Fraud 
Enforcement Act of 1988 authorized the Commission to award bounties to 
persons who provided information leading to the recovery of civil 
penalties for insider trading violations; the bounty provision was 
codified as former Section 21A(e) of the Securities Exchange Act of 
1934 (``Exchange Act''). In 1989, the Commission adopted procedural 
rules to administer the insider trading bounty program. See 
Applications for Bounty Awards on Civil Penalties Imposed in Insider 
Trading Litigation, Exchange Act Release No. 26994 (June 30, 1989).
    The Dodd-Frank Act created a new and broader program for making 
monetary awards to whistleblowers, codified as Section 21F of the 
Exchange Act.\2\ Under the new whistleblower program, the Commission is 
authorized to make awards to persons who voluntarily provide the 
Commission

[[Page 57385]]

with ``original information'' about a violation of the Federal 
securities laws that leads to the successful enforcement of a ``covered 
judicial or administrative action,'' or a ``related action,'' as those 
terms are defined by the Dodd-Frank Act. Unlike the insider trading 
bounty program, awards may be paid in connection with original 
information concerning any violation of the Federal securities laws. 
Awards may range from 10 to 30 percent of the amounts collected as 
monetary sanctions imposed in the covered judicial or administrative 
action or related actions.
---------------------------------------------------------------------------

    \2\ Section 922 of the Dodd-Frank Act.
---------------------------------------------------------------------------

    In connection with enactment of the new whistleblower provision, 
Congress repealed Section 21A(e).\3\ Because that statutory provision 
is no longer available as a basis for awarding bounties in insider 
trading cases, the Commission is rescinding its rules for 
administration of the insider trading bounty program.
---------------------------------------------------------------------------

    \3\ Section 923(b) of the Dodd-Frank Act.
---------------------------------------------------------------------------

Procedural and Other Matters

    The Administrative Procedure Act (``APA'') generally requires an 
agency to publish notice of a proposed rulemaking in the Federal 
Register.\4\ This requirement does not apply, however, if the agency 
``for good cause'' finds * * * that notice and public procedure thereon 
are impracticable, unnecessary, or contrary to the public interest.'' 
\5\ Because the statutory authority for the insider trading bounty 
program has been repealed, the Commission is removing the rules 
administering the program from the Federal Register. These rules no 
longer have any practical effect, and their continued inclusion in the 
Federal Register might lead to public confusion. For these reasons, the 
Commission finds that good cause exists to dispense with public notice 
and comment because notice and comment would be unnecessary, 
impracticable and contrary to the public interest.\6\ For similar 
reasons the Commission finds good cause for this action to be effective 
immediately.\7\
---------------------------------------------------------------------------

    \4\ See 5 U.S.C. 553(b).
    \5\ 5 U.S.C. 553(b).
    \6\ Similarly, the amendments do not require analysis under the 
Regulatory Flexibility Act. See 5 U.S.C. 601(2) and 603(a) (for 
purposes of Regulatory Flexibility Act analysis, the term ``rule'' 
means any rule for which the agency publishes a general notice of 
proposed rulemaking).
    \7\ Additionally, this finding satisfies the requirements for 
immediate effectiveness under the Small Business Regulatory 
Enforcement Fairness Act. See 5 U.S.C. 808(2); see also 5 U.S.C. 
801(a)(4).
---------------------------------------------------------------------------

    Section 23(a)(2) of the Exchange Act requires the Commission to 
consider the competitive effects of rulemaking under the Exchange Act. 
Further, Section 3(f) of the Exchange Act requires us, when engaging in 
rulemaking where we are required to consider or determine whether an 
action is necessary or appropriate in the public interest, to consider, 
in addition to the protection of investors, whether the action will 
promote efficiency, competition, and capital formation. Because 
Congress has repealed the insider trading bounty program, our removal 
of the procedural rules related to that program will not create any 
competitive advantages or disadvantages, or affect efficiency, 
competition, and capital formation.

Statutory Authority and Text of Amendments

    The Commission is removing regulations pursuant to authority 
provided by Section 23(a) of the Exchange Act.

List of Subjects in 17 CFR Part 201

    Administrative practice and procedure.

Text of Amendments

0
For the reasons set out in the preamble, Title 17, Chapter II of the 
Code of Federal Regulations is amended as follows:

PART 201--RULES OF PRACTICE

0
1. The authority citation for part 201 continues to read as follows:

    Authority: 15 U.S.C. 77s, 77sss, 78w, 78x, 80a-37, and 80b-11; 5 
U.S.C. 504(c)(1).

Subpart C--[Removed and Reserved]

0
2. Remove and reserve Subpart C.

    Dated: September 15, 2010.

    By the Commission.

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-23457 Filed 9-20-10; 8:45 am]
BILLING CODE 8010-01-P
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