In addition, some self-regulatory groups failed to refer even egregious rule violations to their enforcement staffs.

The Public Oversight Board has a tough-sounding name, but it's the type of self-regulatory group that many professions would love to have looking over their shoulder.

The self-regulatory group has also put together a special group on mutual funds, she said, adding, "We're trying to get on a preventive compliance track."

Instead, most disputes are heard by the National Association of Securities Dealers, a self-regulatory group of brokerage firms that pay to be members.

The new board has rewritten the rules three times, and the self-regulatory groups are now mired in the process of tailoring their own rules to reflect the board's plan.

Mr. Harris said he would like to see the formation of a self-regulatory group that would be overseen by a Federal agency.

An industry self-regulatory group, the N.A.S.D. can fine, suspend or expel member firms that break its rules.

He also represented the American Institute of Certified Public Accountants, the trade and self-regulatory group.

He added that a self-regulatory group could easily be established with "the same watchdog function" for the financial advisory industry.

With the pace of change, he said, "I cannot spend 6 to 12 months looking at how to posture a self-regulatory group."