SEC Amendment Eliminates Delegation of Authority to Issue Investigative Orders

The SEC recently announced amendment 17 CFR Part 200, eliminating prior Order 17 CFR Part 200.30-4, issued on August 11, 2009.  In the 2009 Order, the Commission delegated authority to the Director of the Division of Enforcement to issue formal orders initiating investigations.  Moving forward, SEC enforcement staff seeking to exercise investigative authority will be required to obtain formal approval from appointed SEC Commissioners.

The 2009 Order delegating this authority was initially in effect for one year.  At the one-year mark, the Commission amended the rule, extending this delegated authority beyond the one-year period. The amendment, issued March 10, 2025, deletes this earlier delegation of authority. 

The Commission’s Notice of the amendment explains that, because this amendment relates solely to agency organization, procedure or practice, the Administrative Procedure Act (APA) provision that requires notice of rulemaking and opportunity for public comment is inapplicable.  Accordingly, the Commission found, “there is good cause to establish an effective date less than 30 days after publication of this amendment.”