Not only has the U.S. Chamber of Commerce taken the Security and Exchange Commission to court over mutual fund governance, the business advocacy group is now publicly criticizing the Commission's actions towards companies as too harsh, the Associated Press reports.

A report that the U.S. Chamber of Commerce released says that the agency's enforcement program is "increasingly punitive." The report also calls the SEC a "powerful federal prosecutor."

SEC Chairman Christopher Cox said he looks forward to reviewing the report, as he respects the business organization and is interested in their analysis and recommendations.

"The U.S. Chamber of Commerce, which is an advocate for millions of businesses of all sizes, undoubtedly has a valuable perspective on a variety of regulatory issues," Cox said. "The SEC, which is the investor's advocate, will weigh the information in this report carefully, and incorporate the facts and opinions it contains into our ongoing efforts to strengthen the enforcement of our securities laws."

Even after the SEC adopted new guidelines for fining firms for fraudulent conduct, the U.S. Chamber of Commerce is still not pleased, as the organization applauded the changes, but also noted that there is a need for "further clarification." The Chamber recommends that the SEC should do away with imposing fines on companies.

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