The rule that the Securities and Exchange Commission proposed in 2004 that would require fund boards to be overseen by an independent chairman and be 75% comprised by independent directors, including the chairman now that the comment period ended on March 2, is about to be discarded by, writes Dow Jones column Chuck Jaffe.

Few of the current SEC commissioners are in favor of the rule, which has been rejected twice by federal appeals courts and is adamantly opposed by the Investment Company Institute and a number of fund giants, including Fidelity Investments. The best that investors and consumer groups can hope for is a statement from the SEC that putting an independent director in place is a best practice.

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