UPDATE 3-Democrats don't want SEC to act with vacancies

(Recasts; adds Nazareth departure expected after Jan. 1, paragraph 3; SEC comment, paragraph 7)

By John Poirier

WASHINGTON, Oct 3 (Reuters) - The U.S. Securities and Exchange Commission should not make any policy decisions while its two Democratic seats are vacant, the Democratic chairmen of the Senate Banking Committee and the House Financial Services Committee said on Wednesday.

Sen. Christopher Dodd of Connecticut told reporters that nominees to replace Democrats Roel Campos, who has already left the SEC, and Annette Nazareth, who plans to leave soon, have not yet been determined.

A source familiar with the matter said Nazareth is expected to leave the federal agency after Jan. 1.

"Yes," Dodd said when asked if he is concerned.

"I don't think they should be making any decisions at the moment," he added.

House Financial Services Committee Chairman Barney Frank told Reuters he shared Dodd's concerns.

After Nazareth leaves, Chairman Christopher Cox would chair a commission with only his two fellow Republicans remaining, Paul Atkins and Kathleen Casey.