LAKE BUENA VISTA, Florida - With the one-year anniversary of the collapse of Lehman Brothers finally in the rearview mirror and the economy on the way to recovery, many participants in the financial services industry are questioning whether the industry still needs to undergo substantial regulatory change, and what changes, if any, could be beneficial at this point.

"If you tighten regulations too much, you will clog up the market," said Erik Sirri, the former director of the Security and Exchange Commission's Division of Market Regulation, at the Investment Company Institute's annual Tax and Accounting Conference here. "Innovation occurs at the fringes. We should let the fringes be small and innovative, so that if they fail, they will fail small."

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