An informal poll by Diversified Management Resources (DMR) of Belmont, Mass., shows that few mutual fund executives, only 34%, believe that all fund boards should have independent chairmen. Investment professionals are also evenly divided over whether independent chairmen should be required for all mutual fund boards or just for those funds whose managers have allegedly violated compliance rules. Another 34% said that only funds whose managers have violated compliance rules should have independent chairmen. The remaining 32% said that the change should not be instituted.
Compliance professionals were the least supportive of implementing the rule across the board, with only 22% seeing a need for independent chairmen. However, when it comes to funds whose managers have violated substantive compliance rules, half of the legal eagles said an independent chairman was in order.
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