SEC Governor Cynthia Glassman once again spoke out vehemently against the Commissions new rule that will require fund boards to have independent chairmen. Speaking before a gathering of public pension directors Monday, Glassman said the benefits of the new rule have not been "supported by any empirical data."
Glassman also referred to two attacks on the new rule that, while unlikely, could, on an outside chance, force the SEC to overturn its decision. "This debate is not over she said," referring to a lawsuit that the U.S. Chamber of Commerce has brought against the SEC, charging it with overstepping its stated bounds in the Investment Company Act of 1940. She also mentioned a requirement that Congress has put into the fiscal 2005 omnibus spending bill requiring the SEC to conduct a study looking at the effects of independent chairman on fund fees and performance.
Glassman and one other SEC governor voted against the new independent chairman rule, which is set to take effect Jan. 16, 2006, but SEC Chairman and two other members of the Commission outnumbered her.