The SEC has adopted rule changes to delegate authority to its chief accountant with respect to rule changes of the PCAOB (Rel. No. 34-63699, January 11, 2011). The Dodd-Frank Act amended 1934 Act Section 19 to impose new deadlines by which the SEC must publish and act upon proposed rule changes submitted by the PCAOB. The SEC believes the delegation of authority to the chief accountant will conserve resources and maintain the effectiveness and efficiency of the PCAOB rule filing process.

Under the amendments, which are effective upon publication in the Federal Register, the chief accountant is authorized to publish the notice of a PCAOB proposed rule, to approve or disapprove a proposed rule change and to extend for a period not exceeding 90 days from the date of publication of notice of the filing the time frame in which the SEC must act to approve or disapprove the proposed rule change.

The chief accountant is also authorized to determine the appropriateness of extending the period during which the SEC must by order approve or disapprove a proposed rule change or institute proceedings to determine whether to disapprove the proposal and publish the reasons for its determination. The chief accountant may also extend for a period not exceeding 240 days from the date of publication of notice of the filing of a proposed rule change the period during which the SEC must conclude proceedings to determine whether to disapprove the proposal and to determine whether the longer period is appropriate.

The amendments also allow the chief accountant to temporarily suspend the PCAOB’s proposed rule change, to institute proceedings to determine whether a proposed rule should be disapproved and to provide notice of the grounds that are under consideration for disapproval. The chief accountant may also find good cause to approve a proposal on an accelerated basis, in which case it would publish the reasons for its determination.

The SEC believes the delegation of authority to the chief accountant will help it to timely comply with the amendments to Section 19 and the new statutory deadlines. The chief accountant also may submit any matters to the Commission for consideration that that he or she deems appropriate.