As the Securities and Exchange Commission sifts through more than 300 comment letters on its mutual fund independent board rule, some are speculating that the Commission might capitulate by requiring only two-thirds, not 75%, of the board be independent, Dow Jones reports. And there is a slight chance the SEC might permit funds to determine for themselves if the chairman should be independent, as well.
The two-thirds compromise "might be more palatable" to regulators, said fund consultant Geoff Bobroff of Bobroff Consulting.
As for when the SEC will make its decision, a spokesman said that depends upon the complexity of the comment letters.
Meanwhile, the U.S. Chamber of Commerce, which twice has successfully sued the SEC on the matter, said that if it is not happy with the SEC's third take on the rule, it is prepared to take it to court again.
And some believe that even an independence of two-thirds will not satisfy the powerful business lobby.
Certainly, U.S. Chamber Vice President and Chief of Staff David Chavern hinted that could be the case when he said, "If there is [a new rule], there should be a disclosure rule."
