Order Approving Public Company Accounting Oversight Board Supplemental Budget Request To Establish an Office of Outreach and Small Business Liaison in 2010, 78779-78780 [2010-31537]

Download as PDF Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices statutory deadline. In the interest of expedition, in light of the 120-day decision schedule, the Commission may request the Postal Service or other participants to submit information or memoranda of law on any appropriate issue. As required by the Commission rules, if any motions are filed, responses are due 7 days after any such motion is filed. See 39 CFR 3001.21. It is ordered: 1. The Postal Service shall file the administrative record in this appeal, or otherwise file a responsive pleading to the appeal, by December 22, 2010. 2. The procedural schedule listed below is hereby adopted. 78779 3. Pursuant to 39 U.S.C. 505, Katrina Martinez is designated officer of the Commission (Public Representative) to represent the interests of the general public. 4. The Secretary shall arrange for publication of this Notice and Order and Procedural Schedule in the Federal Register. PROCEDURAL SCHEDULE December 7, 2010 .............................................. December 22, 2010 ............................................. January 4, 2011 .................................................. January 11, 2010 ................................................ January 31, 2011 ................................................ February 15, 2011 ............................................... February 22, 2011 ............................................... April 1, 2011 ........................................................ By the Commission. Shoshana M. Grove, Secretary. [FR Doc. 2010–31554 Filed 12–15–10; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Securities Act of 1933 Release No. 9162/ December 10, 2010; Securities Exchange Act of 1934 Release No. 63526/December 10, 2010] srobinson on DSKHWCL6B1PROD with NOTICES Order Approving Public Company Accounting Oversight Board Supplemental Budget Request To Establish an Office of Outreach and Small Business Liaison in 2010 The Sarbanes-Oxley Act of 2002 1 (the ‘‘Sarbanes-Oxley Act’’) established the Public Company Accounting Oversight Board (the ‘‘PCAOB’’) to oversee the audits of companies and related matters, to protect investors, and to further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB is to accomplish these goals through registration of public accounting firms and standard setting, inspection, and disciplinary programs. Section 109 of the Sarbanes-Oxley Act directs the PCAOB to establish a budget for each fiscal year in accordance with the PCAOB’s internal procedures, subject to approval by the Securities and Exchange Commission (the ‘‘Commission’’). The Commission’s Rules of Practice related to its Informal and Other Procedures includes a rule to facilitate the Commission’s review and approval 1 17 U.S.C. 7202 et seq. VerDate Mar<15>2010 18:00 Dec 15, 2010 Jkt 223001 Filing of Appeal. Deadline for Postal Service to file administrative record in this appeal or responsive pleading. Deadline for notices to intervene (see 39 CFR 3001.111(b)). Deadline for Petitioner’s Form 61 or initial brief in support of petition (see 39 CFR 3001.115(a) and (b)). Deadline for answering brief in support of Postal Service (see 39 CFR 3001.115(c)). Deadline for reply briefs in response to answering briefs (see 39 CFR 3001.115(d)). Deadline for motions by any party requesting oral argument; the Commission will schedule oral argument only when it is a necessary addition to the written filings (see 39 CFR 3001.116). Expiration of the Commission’s 120-day decisional schedule (see 39 U.S.C. 404(d)(5)). of PCAOB budgets.2 This budget rule provides, among other things, a timetable for the preparation and submission of the PCAOB budget, limits on the PCAOB’s ability to incur expenses and obligations except as provided in the approved budget, and procedures relating to supplemental budget requests. In accordance with the Commission’s budget rule, the PCAOB submitted to the Commission a budget for calendar year 2010 that was approved by the Commission on December 22, 2009.3 Effective July 21, 2010, Section 982 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 4 (the ‘‘DoddFrank Act’’) amended the SarbanesOxley Act to authorize the PCAOB, among other things, to establish, subject to approval by the Commission, auditing and related attestation, quality control, ethics, and independence standards to be used by registered public accounting firms with respect to the preparation and issuance of audit reports to be included in broker-dealer filings with the Commission.5 In light of this new authority, the PCAOB reassessed its communications and outreach strategy. As a result of this reassessment, the PCAOB intends to enhance its outreach function by establishing a new Office of Outreach and Small Business Liaison (‘‘Office of Outreach’’) to act as a liaison between the PCAOB and any PCAOBregistered public accounting firm, or 2 17 CFR 202.190. See Release No. 33–8724 (July 18, 2006) [71 FR 41998 (July 24, 2006)]. 3 See Release No. 34–61212 (Dec. 22, 2009). 4 Public Law 111–203, 124 Stat. 1376 (July 21, 2010). 5 15 U.S.C. 78a et seq. PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 any other person affected by the Board’s regulatory activities, including in particular, entities in the small business community, such as the auditors of broker-dealers. In order to establish this office in 2010, the PCAOB is required under the budget rule to submit a supplemental budget request for Commission approval.6 Pursuant to the procedures set forth in the budget rule, on October 28, 2010, the PCAOB submitted to the Commission a supplemental budget request seeking approval to establish the Office of Outreach in 2010.7 The Board believes that the creation of the Office of Outreach would not result in a net cost increase in 2010. To the extent that any unanticipated costs emerge, the PCAOB proposes to accommodate them from within available funds currently budgeted for the Office of Communications in 2010. Costs associated with the Office of Outreach in future years will be considered by the Commission as part of its review of the PCAOB budgets for those years. Staff from the Commission’s Offices of the Chief Accountant and Executive Director reviewed and analyzed the PCAOB’s supplemental budget request and did not identify any matters that are inconsistent with Section 109 of the Sarbanes-Oxley Act or the Commission’s budget rule. Upon considering the staff’s review and analysis, the Commission has determined that the PCAOB’s request to create the Office of Outreach in 2010 is consistent with Section 109 of the 6 See 7 17 E:\FR\FM\16DEN1.SGM 17 CFR 240.190(b)(10). CFR 202.190(f). 16DEN1 78780 Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices Sarbanes-Oxley Act and the Commission’s budget rule. Accordingly, It is ordered, pursuant to Section 109 of the Sarbanes-Oxley Act, that the PCAOB’s supplemental budget request to create the Office of Outreach in 2010 is approved. rule change. The text of these statements may be examined at the places specified in Item IV below. CBOE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. By the Commission. Elizabeth M. Murphy, Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2010–31537 Filed 12–15–10; 8:45 am] 1. Purpose BILLING CODE 8011–01–P The Exchange charges an Options Regulatory Fee (‘‘ORF’’) of $.004 per contract to each Trading Permit Holder for all options transactions executed or cleared by the Trading Permit Holder that are cleared by The Options Clearing Corporation (‘‘OCC’’) in the customer range, excluding Linkage 3 orders, regardless of the exchange on which the transaction occurs. The ORF is collected indirectly from Trading Permit Holders through their clearing firms by OCC on behalf of the Exchange.4 The Exchange has reevaluated the current amount of the ORF in connection with its annual budget review. In light of increased regulatory costs and expected volume levels for 2011, the Exchange proposes to increase the ORF from $.004 per contract to $.0045 per contract. The proposed fee change would become operative on January 3, 2011. The Exchange monitors the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed regulatory costs. The Exchange will continue to monitor regulatory costs and revenues at a minimum on an annual basis. If the Exchange determines regulatory revenues exceed regulatory costs, the Exchange would SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63524; File No. SR–CBOE– 2010–110] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Regulatory Fee December 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on December 6, 2010, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by CBOE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) proposes to increase its Options Regulatory Fee. The text of the proposed rule change is available on the Exchange’s Web site https:// www.cboe.org/legal/, at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. srobinson on DSKHWCL6B1PROD with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 18:00 Dec 15, 2010 Jkt 223001 3 The term ‘‘Linkage’’ refers to the Options Order Protection and Locked/Crossed Market Plan. 4 The ORF was established in October 2008 as a replacement of Registered Representative fees. See Securities Exchange Act Release No. 58817 (October 20, 2008), 73 FR 63744 (October 27, 2008). The ORF was to be effective January 1, 2009. In December 2008 and January 2009, the Exchange filed proposed rule changes waiving the ORF for January and February, to allow additional time for the Exchange, OCC and firms to put in place appropriate procedures to implement the fee. See Securities Exchange Act Release No. 59182 (December 30, 2008), 74 FR 730 (January 7, 2009), and Securities Exchange Act Release No. 59355 (February 3, 2009), 74 FR 6677 (February 10, 2009). The ORF was amended three additional times in 2009. See Securities Exchange Act Release No. 59427 (February 20, 2009), 74 FR 9013 (February 27, 2009); Securities Exchange Act Release No. 60093 (June 10, 2009), 74 FR 28749 (June 17, 2009); and Securities Exchange Act Release No. 60513 (August 17, 2009), 74 FR 42719 (August 24, 2009). The ORF was amended in March 2010 to eliminate a reference to a one-cent charge per trade. See Securities Exchange Act Release No. 61641 (March 3, 2010), 75 FR 11220 (March 10, 2010). PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 adjust the ORF by submitting a fee change filing to the Commission. The Exchange notifies Trading Permit Holders of adjustments to the ORF via regulatory circular. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’),5 in general, and furthers the objectives of Section 6(b)(4) 6 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders. The Exchange believes the proposed ORF is reasonable because revenue from the proposed ORF, in combination with the Exchange’s other regulatory fees and fines, will not exceed regulatory costs. The Exchange believes the proposed ORF is equitable because it would apply uniformly to all Trading Permit Holders who are being assessed the ORF. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and subparagraph (f)(2) of Rule 19b–4 8 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f)(2). 6 15 E:\FR\FM\16DEN1.SGM 16DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 241 (Thursday, December 16, 2010)]
[Notices]
[Pages 78779-78780]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31537]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Securities Act of 1933 Release No. 9162/December 10, 2010; Securities 
Exchange Act of 1934 Release No. 63526/December 10, 2010]


Order Approving Public Company Accounting Oversight Board 
Supplemental Budget Request To Establish an Office of Outreach and 
Small Business Liaison in 2010

    The Sarbanes-Oxley Act of 2002 \1\ (the ``Sarbanes-Oxley Act'') 
established the Public Company Accounting Oversight Board (the 
``PCAOB'') to oversee the audits of companies and related matters, to 
protect investors, and to further the public interest in the 
preparation of informative, accurate and independent audit reports. The 
PCAOB is to accomplish these goals through registration of public 
accounting firms and standard setting, inspection, and disciplinary 
programs. Section 109 of the Sarbanes-Oxley Act directs the PCAOB to 
establish a budget for each fiscal year in accordance with the PCAOB's 
internal procedures, subject to approval by the Securities and Exchange 
Commission (the ``Commission'').
---------------------------------------------------------------------------

    \1\ 17 U.S.C. 7202 et seq.
---------------------------------------------------------------------------

    The Commission's Rules of Practice related to its Informal and 
Other Procedures includes a rule to facilitate the Commission's review 
and approval of PCAOB budgets.\2\ This budget rule provides, among 
other things, a timetable for the preparation and submission of the 
PCAOB budget, limits on the PCAOB's ability to incur expenses and 
obligations except as provided in the approved budget, and procedures 
relating to supplemental budget requests. In accordance with the 
Commission's budget rule, the PCAOB submitted to the Commission a 
budget for calendar year 2010 that was approved by the Commission on 
December 22, 2009.\3\
---------------------------------------------------------------------------

    \2\ 17 CFR 202.190. See Release No. 33-8724 (July 18, 2006) [71 
FR 41998 (July 24, 2006)].
    \3\ See Release No. 34-61212 (Dec. 22, 2009).
---------------------------------------------------------------------------

    Effective July 21, 2010, Section 982 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act \4\ (the ``Dodd-Frank Act'') amended 
the Sarbanes-Oxley Act to authorize the PCAOB, among other things, to 
establish, subject to approval by the Commission, auditing and related 
attestation, quality control, ethics, and independence standards to be 
used by registered public accounting firms with respect to the 
preparation and issuance of audit reports to be included in broker-
dealer filings with the Commission.\5\ In light of this new authority, 
the PCAOB reassessed its communications and outreach strategy.
---------------------------------------------------------------------------

    \4\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).
    \5\ 15 U.S.C. 78a et seq.
---------------------------------------------------------------------------

    As a result of this reassessment, the PCAOB intends to enhance its 
outreach function by establishing a new Office of Outreach and Small 
Business Liaison (``Office of Outreach'') to act as a liaison between 
the PCAOB and any PCAOB-registered public accounting firm, or any other 
person affected by the Board's regulatory activities, including in 
particular, entities in the small business community, such as the 
auditors of broker-dealers. In order to establish this office in 2010, 
the PCAOB is required under the budget rule to submit a supplemental 
budget request for Commission approval.\6\ Pursuant to the procedures 
set forth in the budget rule, on October 28, 2010, the PCAOB submitted 
to the Commission a supplemental budget request seeking approval to 
establish the Office of Outreach in 2010.\7\
---------------------------------------------------------------------------

    \6\ See 17 CFR 240.190(b)(10).
    \7\ 17 CFR 202.190(f).
---------------------------------------------------------------------------

    The Board believes that the creation of the Office of Outreach 
would not result in a net cost increase in 2010. To the extent that any 
unanticipated costs emerge, the PCAOB proposes to accommodate them from 
within available funds currently budgeted for the Office of 
Communications in 2010. Costs associated with the Office of Outreach in 
future years will be considered by the Commission as part of its review 
of the PCAOB budgets for those years.
    Staff from the Commission's Offices of the Chief Accountant and 
Executive Director reviewed and analyzed the PCAOB's supplemental 
budget request and did not identify any matters that are inconsistent 
with Section 109 of the Sarbanes-Oxley Act or the Commission's budget 
rule. Upon considering the staff's review and analysis, the Commission 
has determined that the PCAOB's request to create the Office of 
Outreach in 2010 is consistent with Section 109 of the

[[Page 78780]]

Sarbanes-Oxley Act and the Commission's budget rule. Accordingly,
    It is ordered, pursuant to Section 109 of the Sarbanes-Oxley Act, 
that the PCAOB's supplemental budget request to create the Office of 
Outreach in 2010 is approved.


    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-31537 Filed 12-15-10; 8:45 am]
BILLING CODE 8011-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.