The Securities and Exchange Commission has issued the "SEC 2005 Performance and Accountability Report," which is a synopsis of the SEC's major accomplishments of this year and the challenges it faces in the future.

The SEC sees its accomplishments as falling into the categories of enforcement, the promotion of informed investor decision-making, strengthening of market structure, governance, the oversight of broker/dealers, improved operational effectiveness and the adoption of new information technologies.

It is no surprise that the report underlines the fact that this is the year that the SEC adopted the rule requiring many, if not most, hedge fund managers to register as investment advisors.

In addition, the report highlights that the SEC concentrated on reforming mutual funds due to the heightened late-trading and market-timing scandal.

Looking ahead, the SEC sees the following challenges: improving its accounting and financial statement preparation systems, strengthening budget planning, improving the administration and distribution of funds it collects for the benefit of victims of security fraud, improve its information technology management, enhancing risk assessment, and strengthening its management of its human capital.

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