“In a single year, 2005, our industry made strides in restoring public trust and confidence, we advanced our regulatory agenda, we reduced operational complaints, increased industry employment and turned our attention to winding up what may be the best year we’ve ever had in terms of financial performance,” said Daniel Ludeman, SIA Chairman, in his final address to the industry as Chairman of the association.
Among the most acclaimed accomplishments for the industry in 2005 is its significant contribution to the U.S. economy. “We have a long, proud history of being the main source of fuel for the world’s largest economic engine,” said Marc Lackritz, SIA President. “This year, for example, we are on track to raise a record $3.8 trillion in new capital for our growing economy – for new plants, new technologies, new schools, and new jobs. That is up eight percent from 2004 and is the fifth consecutive year we have raised more than $3 trillion in a $12 trillion economy.”
While the industry was particularly successful this year in raising capital in the economy, it was equally successful in terms of industry profitability. “We are forecasting pre-tax profits of $23.7 billion, up 14.5 percent from last year’s $20.7 billion,” commented Lackritz. “Domestic revenues are estimated to reach $214 billion, or 32 percent higher than 2004’s results.”
Success stories from 2005 are not limited solely to the economic performance of the industry. SIA also had a particularly successful year in Washington promoting its agenda on behalf of the industry. In 2005 SIA focused on the industry’s commitment to clarity, savings and retirement, achieving an extension of the dividend and capital gains tax rate, striving to create a more efficient regulation system, and enhancing investor education and diversity.
Of these, none was more central to repairing and restoring the public’s trust and confidence in the industry than its commitment to clarity. “We have emerged from the haze of scandal and governance issues to make clear that our industry sets a high standard for integrity and service and that the vast majority of people who labor in this industry are good people with sound values,” said Ludeman.
As a means of demonstrating this commitment to clarity, in 2005 the industry took a historic step and adopted the first ever Inventors’ Bill of Rights and Responsibilities. “Hours of discussion and hard work went into framing and refining it,” said Ludeman. “And the result is the first industry-wide document of its kind – a tangible, living statement of our commitment and determination to do right by our clients.”
100 of the association’s member-firms have adopted the Investors’ Bill of Rights and Responsibilities in its current form or customized it to suit their business models more precisely, while the full membership endorsed the document through a proxy vote during the Annual Meeting.
