Supplementary Material, Securities Industry Y2K Transition:
Remarks by Chairman Levitt at the Year 2000 Industry Status Report Media Briefing
September 7, 1999
Good morning and thank you for joining us today.
I'd like to introduce my colleagues from the White House and the securities industry. On my right is John Koskinen, Chairman of the President's Council on Year 2000 Conversion. To his right is Matt Fink, President of the Investment Company Institute. On my left is Dick Grasso, Chairman of the New York Stock Exchange. To his left is Frank Zarb, Chairman and CEO of the National Association of Securities Dealers. And to Frank's left is Marc Lackritz, President of the Securities Industry Association.
As we enter the final quarter of 1999, more and more people are focusing on the implications of the Year 2000 computer problem. With this in mind, we felt it was important to give you a status report on the securities industry's Year 2000 preparedness.
Let me begin by reporting that as of August 31, 1999, all the Securities and Exchange Commission's mission critical and non-mission critical computer systems are remediated, tested and are now Year 2000 compliant. Investors, public companies, and many others can rest assured that the SEC is prepared for the new millennium. This is a testament to the dedicated efforts of a number of SEC employees.
In addition to making sure our own computer systems are in order, the Commission has been paying close attention to the readiness of the industry. Since 1996, the SEC has undertaken a series of actions to ensure that investors are informed and protected.
We have, among other things, conducted examinations, issued interpretive guidance, engaged in rulemaking, and brought enforcement actions. We have required extensive disclosure by broker-dealers, non-bank transfer agents, and investment advisers and mutual funds. We made these disclosures available to the public on the Commission's web site. For the small number of companies who have not met the disclosure requirements, we have initiated cases against them. And, the Commission will continue to conduct intensive examinations to validate these disclosures.
All the while, the industry has taken vigorous steps to address and solve the problem. The firms and exchanges have been actively testing their systems and have developed detailed plans to address unforeseen issues. And, I want to commend the industry for being resolute in its commitment to thoroughly prepare itself for the millennium date change.
Let me now turn to John Koskinen and then we'll hear from Dick, Frank, Marc and Matt on the state of their Year 2000 remediation efforts.
Thank you very much.