FOR IMMEDIATE RELEASE                                2000-65


 Chairman Arthur Levitt Praises Investment Counsel Association
                          of America
        On Best Practices Addressing Pay-To-Play Abuses

      Washington, DC, May 16, 2000 -- Securities and Exhange
Commission Chairman Arthur Levitt today praised the Investment
Counsel Association of America (ICAA) for developing best
practices to address pay-to-play abuses in the investment
advisory industry.  The best practices were released in a
report issued today.  "Pay-to-play" in the advisory industry
refers to the practice of making political contributions to
obtain government contracts to manage public funds.

      Chairman Levitt said, "The report and the recommendations
are important steps toward preventing pay-to-play abuses in the
investment advisory industry and indicate that the industry is
serious about addressing those problems.  I commend the ICAA on
this important initiative.  Working together, the SEC and the
advisory industry can help eliminate the abusive practices that
undermine the integrity of the investment adviser selection
process.  The ICAA's report gives us a number of
recommendations to consider as we craft a final rule to
eliminate pay-to-play abuses in the industry."

     The ICAA report was issued in response to the Commission's
proposed rule addressing pay-to-play abuses in the advisory
industry.  The SEC proposed its rule after the Municipal
Securities Rulemaking Board adopted Rule G-37 to address pay-to-
play in the municipal finance industry.

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