Washington - Proposed Securities and Exchange Commission rules prohibiting independent auditors from providing other types of consulting services to their audit clients should be adopted, two mutual fund industry executives told the SEC last week.

John H. Biggs, chairman, president, and CEO of TIAA-CREF, said he supported the SEC's proposal but called for a simpler yet harsher rule prohibiting independent auditors from performing other types of consulting services. John C. Bogle, founder and former CEO of the Vanguard Group, and currently an independent member of the Independence Standards Board, also supported a version of what Biggs called a, "simple rule." The potential problem of accounting firms' independence suffering at the hands of multi-million dollar consulting fees "speaks for itself," he said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.