SEC Chairman Tells Congress To Back Off

SEC Chairman William Donaldson said "no thanks" to offers from Congress to assist with mutual fund reform, rebuffing efforts by Congress to reform the $7.5 trillion mutual fund industry, Dow Jones Newswires reports.
During a speech at a NASD conference in Boston, Donaldson praised the Commission’s progress in reforming the mutual fund industry and said forthcoming shareholder protection guidelines are quickly emerging. The remarks were aimed at fending off criticism that the SEC is not moving quickly enough to implement reforms and needs help from Congress to confront powerful industry lobbyists.
Donaldson went so far as to characterize proposals to join forces with Congress as "counterproductive" during a question and answer session. Summing up the SEC's accomplishments in recent months, Donaldson also praised the Commission for launching a task force to study 12b-1 fees and directed-brokerage practices. NASD Chairman and CEO Robert Glauber said he anticipates the task force to wrap up its study on these sales practices and submit a report to the SEC by the fall.