Online Extra: What Gets the SEC's Atkins Riled Up

Paul S. Atkins is making waves at the normally staid Securities & Exchange Commission. At 46, he's the youngest of the commission's five members, and, like SEC Chairman William H. Donaldson, he's a Republican. But Atkins, a firm believer in limited government, has harshly criticized Donaldson's drives to regulate hedge funds, force mutual-fund boards to have independent chairmen, and promise investors that the best prices will be protected when they buy or sell stock. And behind the scenes, Atkins balks at some of the stiff fines the commission metes out to corporate fraudsters.

A soft-spoken, congenial lawyer, Atkins believes the SEC shouldn't rush to regulate without empirical evidence that proposed rules would significantly benefit investors. That has endeared him to many in business and conservative circles, who think the SEC is in regulatory overdrive. But Atkins' outspoken ways have irritated some staffers and Donaldson, and fragmented the SEC's voice, spurring doubts about the agency's commitment to post-Enron reforms. BusinessWeek Washington Correspondent Amy Borrus interviewed Atkins about his views and his role on Jan. 31. Edited excerpts from the interview follow: