From Investment Company Institute Chairman Paul G. Haaga, Jr. today endorsed the “action plan” outlined by SEC chairman Willliam Donaldsons to tackle market abuse in late trading and market timing via better enforcement of current laws, cooperation with state prosecutors and a thorough re-examination of relevant rules to determine where they should be strengthened.
“The Institute pledges to work constructively and expeditiously in support of the SEC’s approach,” says Haaga. “Mutual funds have successfully served investors for more than six decades because of the SEC’s strict and effective system of regulation and oversight. The SEC’s action plan will help ensure that mutual funds continue to serve investors effectively in the years ahead.”
Investment Company Institute President Matthew P. Fink added: “The regulatory component of Chairman Donaldson’s action plan includes five critical steps to protect against late trading and market timing abuses. The Institute will do all we can to support the Commission and the SEC staff as each step is developed and the need for possible reforms determined. In addition, Chairman Donaldson announced that he intends to strengthen the SEC ‘s ability to foresee potential problems that could harm investors or undermine their confidence in the integrity of our markets. Mutual fund companies welcome this initiative, and will offer any assistance that the Commission deems helpful.”