⚖️SEC Amends Delegation of Authority for Investigative Orders
Delegation of Authority to Director of the Division of Enforcement
Summary
The Securities and Exchange Commission ("Commission") is amending its regulations with respect to the delegations of authority to the Director of the Division of Enforcement ("Director") to eliminate the delegation of authority to issue formal orders of investigation. Formal orders designate the enforcement staff authorized to issue subpoenas in connection with investigations under the Federal securities laws. This amendment is the result of the Commission's experience with its nonpublic investigations. The amendment is intended to increase effectiveness by more closely aligning the Commission's use of its investigative resources with Commission priorities.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The amendment eliminates the SEC's authority delegation to issue formal orders of investigation, which impacts compliance and regulatory practices for businesses involved with federal securities laws. Businesses may face new directives or enhanced scrutiny regarding investigations.