§78d–1 Delegation of Functions by Commission

Summary

The SEC can let its own parts, a single commissioner, an administrative law judge, an employee, or an employee board do its work. It must make that delegation by a published order or rule. Delegated work can include hearings, decisions, orders, certifications, reports, or other actions. This does not change the rules in 5 U.S.C. 556(b). It also does not let the SEC give away its power to make general rules under subchapter II of chapter 5 of title 5, or to make any rule under section 78s(c). The SEC can decide to review any delegated action on its own or when someone asks, following the time and procedures the SEC sets. One commissioner’s vote is enough to require review. A person harmed by a delegated action can get SEC review if the action (1) denies certain requests (sections 77h(a), 77h(c), or the first sentence of 78l(d)); (2) suspends trading (section 78l(k)); or (3) is an adjudication (as defined in 5 U.S.C. 551) that is not required to be decided on the full record after notice and hearing, except for matters listed in 5 U.S.C. 554(a)(1)–(6). If the SEC refuses review or no one asks in time, the delegated action becomes the SEC’s own action for all purposes, including appeals.