SEC Chairman Addresses Directors Conference

Washington, DC, October 21, 2004 - SEC Chairman William H. Donaldson discussed recent SEC fund governance initiatives in his remarks at the 2004 Directors' Conference.

Donaldson praised the Independent Directors Council (IDC), a new entity that "will help to deepen the involvement of independent directors in the many important public-policy debates affecting the mutual fund industry." He commended the Council for providing a forum for communication among independent directors and opportunities for professional and educational development.

Donaldson also congratulated ICI President Paul Schott Stevens on his new position. "Paul has a record of strong leadership, and I am confident that in this new position he will represent the interest of investment companies, and investors, alike."

The industry and regulators will need to work together to restore investors' confidence, according to Donaldson. He urged directors to comment on proposals and make suggestions that will help to protect investors, and invited the IDC to identify areas where best practices or industry standards should be established. "As we continue this joint effort to restore mutual fund investor confidence, I look forward to working with both the Independent Directors Council and the Investment Company Institute to reach our common goals," Donaldson said.