5.8.2009 SEC Chairman Mary L. Schapiro spoke at the Investment Company Institute General Membership Meeting in Washington, D.C. She began her speech by stating that the SEC is acting aggressively to transform itself into a stronger, better and more agile regulator. She spoke about expected financial regulatory reform and stated that it should be governed by three principles:

  • Any system of regulation must take as its touchstone the protection of individual well-being;
  • Any system of regulation should be designed to facilitate fair and efficient financial markets, not to supplant them; and
  • Any new regulatory system must promote and preserve public trust in our financial markets.

She next stated that the financial regulatory system should include:

  • An entity responsible for the regulation of the markets for investment capital;
  • An entity (or entities) responsible for regulating banking institutions;
  • An entity responsible for monitoring and averting risks to the financial system as a whole; and
  • An entity responsible for resolution of troubled institutions.

Click http://www.sec.gov/news/speech/2009/spch050809mls.htm to access Chairman Schapiro’s full remarks.