On August 5, the Securities and Exchange Commission amended its rules to delegate to the Director of the Division of Enforcement authority to issue formal orders of investigation. Pursuant to such an order, the enforcement staff of the SEC may issue subpoenas as part of an investigation under the federal securities laws. The amendment to the rule is intended to streamline the investigative process by reducing the time and paperwork previously associated with obtaining Commission authorization prior to issuing subpoenas. The Commission is adopting the delegation for a period of one year, and after that time, it will evaluate whether to extend it. However, formal orders issued during this one-year period will continue to remain in effect beyond the one-year period. Despite the delegation, if the Division Director determines it to be appropriate, a recommendation that a formal order be issued may be submitted to the Commission for its review.
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