whether any revisions or modifications to the rules are needed and whether any additional legislation is warranted in this area.

SEC's plan to gain experience with the data and then to determine whether additional rule or legislative changes are needed is consistent with the intent of GAO's recommendation. However, GAO is concerned that SEC'S stated opposition to consolidated regulation indicates that SEC may have already determined, without first collecting and analyzing the data, that just obtaining information is the preferred approach to dealing with the potential risks posed by the unregulated financial activities of broker-dealer affiliates and holding companies.