Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Go Back and Do it Right, Court Orders SEC Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, April 07, 2006

Go Back and Do it Right, Court Orders SEC

by: Marie Glancy

The U.S. Chamber of Commerce has won the latest skirmish in its protracted legal battle with the SEC over the composition of mutual fund boards.

On Friday, the U.S. Court of Appeals in Washington issued a 33-page opinion agreeing with the Chamber's claim that the SEC's mutual fund governance rule was improperly implemented. It ordered the SEC to undertake its second reconsideration of the rule -- meaning the Commission must open the matter for public comment and report back to the court in 90 days.

The rule requires that 75 percent of a mutual fund's board of directors must be individuals with no direct ties to fund managers, and that board chairs can have no such ties. It was adopted in 2004 as part of the SEC's response to industry trading scandals, but after a challenge from the Chamber last year, the court decided there were "deficiencies" in the way the rule had been developed. Ordered to address these problems, the SEC reaffirmed the rule in a divided vote under former chairman William Donaldson.

This time around, the Chamber claimed the rule had been reaffirmed in violation of federal procedures. The court has agreed that the SEC failed to solicit public comment.

Pending this latest review, the rule will not be in effect.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use