Stevens lauded the efforts of the Securities and Exchange Commission in putting into place additional regulatory reforms since New York Attorney General Eliot Spitzer unearthed trading scandals in the $8 trillion mutual fund industry nearly two years ago.

Still, Stevens said, the SEC must exercise caution in implementing new reforms that might end up hurting the very investors the Commission seeks to protect. "Individually, these requirements may serve valid and useful purposes," he said, adding, "it is the totality of regulatory requirements under which mutual funds operate that gives us cause for concern."

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