[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Rules and Regulations]
[Pages 39769-39770]
From the Federal Register Online via the Government Publishing 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