Harvey Pitt, Former SEC Chairman, Dies at 78

While chairman, Pitt oversaw the SEC's response to the Sept. 11 attacks and led rulemaking efforts in response to the corporate accounting crises of the 1990s, the commissioners explained. "Even in the last year, he has made himself available to offer advice and continued to submit comment letters on our rulemaking proposals. Our hearts go out to Saree and Harvey's family."

Pitt reiterated his long-held view in a recent interview with ThinkAdvisor that the SEC "is NOT able adequately to examine" advisors.

"The growth in the industry simply makes it impossible for the SEC to keep up," Pitt said. "Its use of specific subject matters for review is creative, but ultimately unavailing. There is a need for a private sector regulatory body. The SEC could facilitate this development by encouraging RIAs voluntarily to join a private sector regulatory body."

Pitt also explained in another interview why the SEC's proposed rule on private funds amounts to an "overreach" by the agency, saying the proposed rule "prohibits certain relationships" that traditionally are handled under the securities laws by disclosure. "This proposal will be reviewed by the courts, there's no doubt," Pitt said.