Levitt’s Accomplishments as Chairman of the SEC
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Here are some of the significant initiatives by the Securities and Exchange Commission during Arthur Levitt’s 7 1/2 years as chairman of the agency:
Enforcement and Fair Dealing
* Developed order-handling rules and limit-order protections to reduce stock price “spreads” in the Nasdaq market.
* Adopted Regulation FD (for Fair Disclosure), prohibiting disclosure of corporate information to select analysts.
* Boosted enforcement and disclosure in the bond markets, making commissions more transparent.
* Increased scrutiny of rogue brokers and worked with prosecutors to crack down on securities fraud.
* Battled conflicts of interest in the accounting industry to ensure increased accuracy in financial reporting.
Mutual Funds
* Pushed for “plain English” prospectuses and created fund profiles--a short-form disclosure of the main points in the prospectus.
* Adopted rules requiring funds to disclose standardized returns, making it easier to compare funds’ after-tax performance.
* Prohibited mutual funds from using names that mislead investors about a fund’s investments or risks.
* Increased the role of independent directors on mutual fund boards.
Investor Education
* Created the Office of Investor Education and Assistance.
* Launched a mutual fund cost calculator on the SEC Web site (https://www.sec.gov) that helps investors compare the effect of fees on the value of their investments.
* Created a Web site to provide the public with free and prompt access to corporate filings and investor education materials.
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