Delegation of Authority to the Director of Its Division of Enforcement, 39769-39770 [2011-16864]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Rules and Regulations]
[Pages 39769-39770]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16864]



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SECURITIES AND EXCHANGE COMMISSION



17 CFR Part 200



[Release No. 34-64778]




Delegation of Authority to the Director of Its Division of 

Enforcement



AGENCY: Securities and Exchange Commission.



ACTION: Final rule.



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SUMMARY: The Commission is amending its rules to delegate authority to 

the Director of the Division of Enforcement to disclose information 

that could reasonably be expected to reveal the identity of a 

whistleblower (``whistleblower identifying information'') to those 

persons to whom disclosure may be made without loss of confidentiality 

under the whistleblower provisions of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (the ``Dodd-Frank Act'').



DATES: Effective Date: July 7, 2011.



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: Section 922 of the Dodd-Frank Act, Public 

Law 111-203, 124 Stat. 1376, 1841 (2010), added Section 21F to the 

Securities Exchange Act of 1934, 15 U.S.C. 78u-6, which creates a new 

program authorizing the Commission to make monetary awards to 

whistleblowers who provide the Commission with ``original information'' 

that leads to the successful enforcement of a ``covered judicial or 

administrative action'' or a ``related action,'' as those terms are 

defined in Section 21F(a), 15 U.S.C. 78u-6(a). Awards may be paid in 

connection with original information concerning any violation of the 

federal securities laws, and may range from 10 to 30 percent of the 

amounts collected as monetary sanctions imposed in the covered judicial 

or administrative action brought by the Commission or in related 

actions brought by other entities identified in the statute.

    To protect the identity of whistleblowers, Section 21F(h)(2)(A), 15 

U.S.C. 78u-6(h)(2)(A) provides that,



[[Page 39770]]



except as otherwise permitted by that subsection, the Commission 

``shall not disclose any information, including information provided by 

a whistleblower to the Commission, which could reasonably be expected 

to reveal the identity of a whistleblower.'' Such information may be 

disclosed by the Commission under Section 21F(h)(2)(A) to those 

entities identified in Section 21F(h)(2)(D)(i), 15 U.S.C. 78u-

6(h)(2)(D)(i), ``when necessary to accomplish the purposes of [the 

Securities Exchange Act] and to protect investors.'' Otherwise, such 

information may be disclosed by the Commission only in accordance with 

the provisions of the Privacy Act of 1974, 5 U.S.C. 552a, ``unless and 

until required to be disclosed to a defendant or respondent in 

connection with a public proceeding instituted by the Commission or any 

entity described in [Section 21F(h)(2)(D)(i)].''

    Whistleblower identifying information may be disclosed by the 

Commission to the following entities listed in Section 21F(h)(2)(D)(i): 

The Attorney General of the United States; an appropriate regulatory 

authority; a self-regulatory organization; a State attorney general in 

connection with any criminal investigation; any appropriate State 

regulatory authority; the Public Company Accounting Oversight Board; a 

foreign securities authority; or a foreign law enforcement authority. 

Domestic entities to which the Commission discloses such information 

``shall maintain such information as confidential in accordance with 

the requirements established under [Section 21F(h)(2)(A].'' Section 

21F(h)(2)(D)(ii)(I), 15 U.S.C. 78u-6(h)(2)(D)(ii)(I). Foreign 

securities authorities and foreign law enforcement authorities to which 

the Commission discloses such information ``shall maintain such 

information in accordance with such assurances of confidentiality as 

the Commission determines appropriate.'' Section 21F(h)(2)(D)(ii)(II), 

15 U.S.C. 78u-6(h)(2)(D)(ii)(II).

    The Commission is delegating authority to the Director of the 

Division of Enforcement to disclose whistleblower identifying 

information to the entities described in Section 21F(h)(2)(D), in 

accordance with the restrictions of Section 21F(h)(2)(A) and (D). The 

delegation will increase investor protection by facilitating 

administration of the whistleblower award program and the 

investigations and actions by those agencies and authorities that may 

receive whistleblower identifying information pursuant to this 

delegation.



Administrative Law Matters



    The Commission finds, in accordance with the Administrative 

Procedure Act (``APA'') (5 U.S.C. 553(b)(3)(A)), that this amendment 

relates solely to agency organization, procedure, or practice and does 

not relate to a substantive rule. Accordingly, the provisions of the 

APA regarding notice of the proposed rulemaking, opportunities for 

public participation, and publication of the amendment prior to its 

effective date, 5 U.S.C. 553, are not applicable. For the same reason, 

and because this amendment does not substantively affect the rights or 

obligations of non-agency parties, the provisions of the Small Business 

Regulatory Enforcement Fairness Act, 5 U.S.C. 804(3)(C), are not 

applicable. Additionally, the provisions of the Regulatory Flexibility 

Act, which apply only when notice and comment are required by the APA 

or other law, 5 U.S.C. 603, are not applicable. Further, because the 

amendment imposes no new burdens on parties in investigations, the 

Commission does not believe it will have any anti-competitive effects 

for purposes of Section 23(a)(2) of the Securities Exchange Act, 15 

U.S.C. 78w(a)(2). Finally, this amendment does not contain any 

collection of information requirements as defined by the Paperwork 

Reduction Act of 1980, as amended. Accordingly, the amendment is 

effective July 7, 2011.



List of Subjects in 17 CFR Part 200



    Administrative practice and procedure, Authority delegations 

(Government agencies).



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



0

1. The authority citation for part 200, subpart A, continues to read in 

part 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.

* * * * *



0

2. Section 200.30-4 is amended by adding paragraph (a)(16) to read as 

follows:





Sec.  200.30-4  Delegation of authority to Director of Division of 

Enforcement.



* * * * *

    (a) * * *

    (16) To disclose information, in accordance with Section 21F(h)(2) 

of the Securities Exchange Act of 1934 (15 U.S.C. 78u-6(h)(2)), that 

would reveal, or could reasonably be expected to reveal, the identity 

of a whistleblower.

* * * * *



    By the Commission.



    Dated: June 30, 2011.

Elizabeth M. Murphy,

Secretary.

[FR Doc. 2011-16864 Filed 7-6-11; 8:45 am]

BILLING CODE 8011-01-P