Statement by SEC Chairman William H. Donaldson Regarding New York Mutual Fund Probe


Washington, D.C., September 3, 2003 -- SEC Chairman William H. Donaldson said, "The conduct alleged in the complaint is reprehensible and there is no place for it in our markets. Today's action further illustrates the importance of the SEC's ongoing review of both hedge funds and mutual funds and the SEC's upcoming recommendations regarding improvements and increased disclosure requirements for both. As we have stated in announcing our current and ongoing study of hedge funds, there is too much money at stake for us to know as little as we do about these funds, in particular, and how they operate. Concurrently, the broad participation by individual investors in mutual funds requires that we do everything possible to understand, anticipate and address areas where there is the potential for abuse and fraud."

Last modified: 9/3/2003