U.S. President George W. Bush’s nominee to head the Securities and Exchange Commission, Harvey Pitt, appeared before the Senate Banking Committee to begin the confirmation process. In his testimony he recommended a full-scale overhaul of U.S. securities laws, in what some are hoping becomes a massive deregulation process in the United States.

Pitt pledged to be a partner with the government in maintaining fair capital. “This is a critical time in the development and strategic future direction of our capital markets. It is a time for bold and creative thinking, to formulate an agenda that will ensure that the SEC’s next decade can be as universally respected and admired as its past, nearly-seven, decades,” he said.

Pitt went on to outline several goals he would pursue if confirmed: “First, I will ensure vigilant enforcement of sound rules that protect all investors against fraudulent, deceptive and manipulative misconduct, and that make our capital markets the world’s most honest, efficient, and envied. Second, I will focus on the agency’s mission to nurture a climate that is conducive to, and encourages, the creation of capital. Third, I would like the SEC to lead a review of the requirements it administers, and the regulations it imposes, to be certain they are sound, reasonable, cost-effective, and promote competition. Finally, but not least, I believe government is a service industry. To make government meaningful, efficient and competent, agencies like the SEC must reflect a commitment to service. If confirmed, I will devote my total and untiring efforts to enhancing the commission’s responsiveness to all its constituencies, with respect, professionalism, clarity and expedition.”

It is that third pledge that is grabbing attention. Pitt went on to suggest that the SEC’s laws are outdated and in need of an overhaul. “Our securities laws are, in the main, nearly 70-years old, and reflect a time, and a state of technology, light years away from what we now confront daily..”

Pitt also suggested that he would review Regulation Fair Disclosure, which has been unpopular with the securities industry, but wildly popular with ordinary investors.