§78d–1 — Title 15 Commerce and Trade | U.S. Code

Summary

Allows the Securities and Exchange Commission (SEC) to give many of its duties to parts of the agency, to one commissioner, to an administrative law judge, or to employees or employee boards. The SEC must publish the order or rule that makes the delegation. This can cover tasks like holding hearings, making decisions, ordering actions, certifying, or reporting. It does not override section 556(b) of title 5, and it does not allow the SEC to delegate general rulemaking or the specific rulemaking under section 78s(c). The SEC can still review any delegated action on its own or if someone asks, under rules the SEC sets. One commissioner’s vote can send a matter up for review. A person harmed by a delegated action can seek review if the action denies certain requests (see sections 77h(a), 77h(c), or the first sentence of 78l(d)), suspends trading (see 78l(k)), or involves an adjudication as defined in section 551 of title 5 (with the exceptions in 554(a)(1)–(6)). If the SEC declines review or no one asks in time, the delegated action counts as the SEC’s final action for appeals and other legal purposes.

Title 15, §78d–1

Commerce and Trade — Source: USLM XML via OLRC

(a)In addition to its existing authority, the Securities and Exchange Commission shall have the authority to delegate, by published order or rule, any of its functions to a division of the Commission, an individual Commissioner, an administrative law judge, or an employee or employee board, including functions with respect to hearing, determining, ordering, certifying, reporting, or otherwise acting as to any work, business, or matter. Nothing in this section shall be deemed to supersede the provisions of section 556(b) of title 5, or to authorize the delegation of the function of rulemaking as defined in subchapter II of chapter 5 of title 5, with reference to general rules as distinguished from rules of particular applicability, or of the making of any rule pursuant to section 78s(c) of this title.

(b)With respect to the delegation of any of its functions, as provided in subsection (a) of this section, the Commission shall retain a discretionary right to review the action of any such division of the Commission, individual Commissioner, administrative law judge, employee, or employee board, upon its own initiative or upon petition of a party to or intervenor in such action, within such time and in such manner as the Commission by rule shall prescribe. The vote of one member of the Commission shall be sufficient to bring any such action before the Commission for review. A person or party shall be entitled to review by the Commission if he or it is adversely affected by action at a delegated level which (1) denies any request for action pursuant to section 77h(a) or section 77h(c) of this title or the first sentence of section 78l(d) of this title; (2) suspends trading in a security pursuant to section 78l(k) of this title; or (3) is pursuant to any provision of this chapter in a case of adjudication, as defined in section 551 of title 5, not required by this chapter to be determined on the record after notice and opportunity for hearing (except to the extent there is involved a matter described in section 554(a)(1) through (6) of such title 5).

(c)If the right to exercise such review is declined, or if no such review is sought within the time stated in the rules promulgated by the Commission, then the action of any such division of the Commission, individual Commissioner, administrative law judge, employee, or employee board, shall, for all purposes, including appeal or review thereof, be deemed the action of the Commission.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 78d–1, Pub. L. 87–592, § 1, Aug. 20, 1962, 76 Stat. 394; Pub. L. 94–29, § 25, June 4, 1975, 89 Stat. 163; Pub. L. 95–251, § 2(a)(4), Mar. 27, 1978, 92 Stat. 183, provided for subject matter similar to the provisions comprising this section, prior to repeal by section 308(b) of Pub. L. 100–181.

§78d–1 Delegation of functions by Commission

Summary

Title 15, §78d–1

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata