Chairman Cox comes to the job as an insightful, engaged, enthusiastic leader. I anticipate that we will see a renewed, receptive attitude to the benefits of an economic, cost-benefit analytical approach to regulation overall,

OCIE is working on coordination and has committed to me that the commission will have a chance to weigh in on sweep exams.

There is much discussion within the SEC about how Sarbanes-Oxley may be imposing a greater cost than anticipated. Perception can be every bit as important as reality in financial markets.

Just as some of you are working hard to prepare to deal with us, we at the SEC are struggling to get ready to deal with you, ... We have neither the resources nor the expertise to oversee all of the potential new registrants.

Investors for whom this level of oversight is important already can select from among registered advisers, ... If SEC registration were perceived to be uniformly desirable, the market -- meaning investors -- would eventually lead all hedge-fund advisers to register.

I'm very sympathetic about the concerns I've heard about 404 to date,