UPDATE, 4:00 pm: The SEC has now amended its rules to remove the "sunset provision" discussed below. The delegation of authority lives on. The SEC stated that "[i]n making this determination, the Commission considered the increased efficiency in the Division’s conduct of its investigations permitted by the delegation, and the Division’s continued effective communication and coordination in addressing pertinent legal and policy issues with other Commission Divisions and Offices when formal order authority is invoked."

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On his Market Cop blog today, the Washington Post's Zach Goldfarb makes an interesting observation. Last August, the SEC made headlines when it announced that the Commission would delegate authority to the Director of the Division of Enforcement to issue formal orders of investigation. The purpose of this delegation was to expedite the Enforcement Division's ability to gain subpoena power in its investigations, as subpoenas may not be issued in the absence of a formal order. Prior to such delegation, formal orders could only be authorized by the Commission, which was sometimes a lengthy process.

As Goldfarb notes, however, this delegation of authority by the Commission was expressly limited to a one year period--until August 11, 2010. The SEC provided that after August 11, 2010, the Commission must "evaluate whether to extend the delegation." As the delegation of authority has been heralded by the agency as a key reform and has apparently served its purpose of expediting investigations, it seems likely that it will be extended. Stay tuned.