Associations Express Pleasure at Cox Confirmation

WASHINGTON (HedgeWorld)--The full U.S. Senate, acting on a favorable report from its banking committee, voted to confirm President George W. Bush's three nominations to the Securities and Exchange Commission Friday, thus elevating Annette Nazareth to commissioner, extending the tenure of Commissioner Roel C. Campos to 2010, and making Rep. Christopher Cox (R-Calif.) the new chairman, succeeding William Donaldson.

Industry associations this weekend expressed pleasure at Mr. Cox' new post. In a statement, John G. Gaine, president of the Managed Funds Association, said that the MFA looks forward to a productive working relationship with the new chairman. He also congratulated the other two appointees.

"As the hedge fund industry prepares for mandatory registration, MFA will be working more closely than ever with the Commissioners and their staffs to facilitate a constructive dialogue between the agency and our members," the statement said.

The Securities Industry Association, which represents investment banks, broker-dealers, and mutual fund companies, weighed in on Saturday. Its statement quoted President Marc E. Lackritz as saying that the SEC is now in good hands.

Mr. Cox "has an excellent knowledge of the industry and the capital markets," Mr. Lackritz said. "We are ready to work with him to achieve effective investor protection and provide relief to the industry from burdensome, costly, and unnecessary regulation."

Public Citizen, the pro-regulatory lobbying group founded by Ralph Nader, which prior to the banking committee hearings issued a report outlining what it saw as Mr. Cox's ineligibility for the SEC chairmanship, was correspondingly unhappy with his confirmation as SEC chairman.

Its statement Saturday said that this confirmation vote "is a slap in the face to investors across the country and a clear signal to big business that fighting corporate fraud is not a priority of the Bush administration."

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.

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