Donaldson also promised the SEC soon would issue a so-called concept release on the future of securities industry self-regulation.
Donaldson, a former New York Stock Exchange chairman, noted the SEC is still considering a proposal to overhaul rules governing U.S. markets, despite criticism from industry members who want more dramatic changes and also from those opposed to any change.
"I know there are those who resist any change at all to the current system," said Donaldson. He said that attitude impedes efforts to develop a "collaborative relationship" between industry groups and government regulators, and warned against those who demand wholesale abandonment of current rules, saying that could pose "substantial risk" to U.S. markets.
The SEC chairman provided few details as to what kinds of market-structure reforms the SEC might ultimately approve, however.
Donaldson noted under his watch, the SEC reached landmark agreements with big Wall Street investment banks to resolve claims of conflicts of interest involving research analysts, and settled with brokerage firms alleged to have overcharged mutual fund customers and to have engaged in other sales practice abuses.
Overall, Donaldson said in the past two years, the SEC has brought more than 1,300 enforcement actions, pulling in a record $5 billion in penalties and disgorgement.
Copyright 2004 by United Press International
