In his inaugural speech as the 2003 chairman of the U.S. Securities Industry Association, John Schaefer, president and chief operating officer of Morgan Stanley’s Individual Investor Group, said the responsibility for restoring investors’ trust rests squarely on the shoulders of each and every industry employee.

“In the end, despite the toughest regulations, despite the most tenacious regulators, despite the most severe penalties that our courts can impose, it all comes down to one thing: how each of us behaves in our jobs,” Schaefer said. “We each need to act as if our names are on the door.”

Restoring confidence is the industry’s responsibility, he said. “No regulatory regime or framework is magically going to do the job – it is up to every one of us.” Schaefer reflected on industry leaders – including J.P. Morgan, Charlie Merrill, Ben Edwards, Dean Witter, and Allen B. Morgan, Jr. – who all founded firms bearing their names. They “weren’t talking about rules and regulations. They were talking about character, honor, and integrity — a personal code. I think investor confidence will grow as we, the leaders of our industry, continue to demonstrate — every day — that it’s a code we live by, too.”

Restoring the public’s trust and confidence in the securities industry was the highest of a five-point agenda that he outlined for 2003. SIA will also focus on: legislation that will help Americans build assets for retirement or education expenses; automating and streamlining the clearance and settlement process; addressing policy issues related to market linkages, transparency, access to market information, and order routing; and, opening global markets by eliminating barriers that block U.S.-based firms from entering certain foreign markets.

“I hope to stand in front of you one year from now with the message that not only are the market indices up, but our trust and confidence index is up, too – that the people we are dependent on, our customers, think more highly of us and the system we represent. And I am confident that together we can make that happen.”