The Securities and Exchange Commissions unprecedented new rulemaking is likely to subside in coming months, the Associated Press reports. Still, Chairman William Donaldson is expected to remain in his position in President Bushs second term, which will mean a more active Commission overseen by a man who does not balk at fighting big business.
As Barbara Roper, director of investor protection for the Consumer Federation of America, put it: "If Donaldson is staying, thats very good news for investors."
Of all of the new rules that the SEC has imposed on mutual funds, perhaps the most controversial is the one requiring the chairmen of fund boards to be independent from the funds investment advisor. This will require a major overhaul at thousands of funds, requiring about 80% of them, or 3,700 funds, to replace their chairmen.