As expected, the Securities and Exchange Commission voted Wednesday to require funds to have independent chairmen and for 75% of a funds board to be independent, up from 50%. The new rule will require major changes at fund companies, where approximately 80% of the chairmen are currently affiliated with the investment advisor.
"This is the capstone decision of the rules and regulations we have put forward," said SEC Chairman William Donaldson after the open meeting. Donaldson and commissioners Harvey Goldschmid and Roel Campos voted for the measure. Paul Atkins and Cynthia Glassman voted against it.