Second Chance To Give 2 Cents on Independent Chairman Rule?

The Securities and Exchange Commission will take up several ’40 Act issues at its meeting this Wednesday, including potentially re-opening comment on the controversial 2005 rule requiring mutual fund board chairman to be unaffiliated with the fund complexes. Fund companies complained that the rule would bring undue cost and burden, despite SEC claims otherwise. The rule passed 3-2. This year, a federal appeals court criticized the SEC for failing to conduct thorough enough research on the impact of the rule, and ordered the regulator to conduct such research and devise alternative solutions. Wednesday’s open meeting agenda calls for the Commission to consider re-opening the comment period on this rule, in order to better prepare for a more thorough report to be published by the Office of Economic Analysis. Although several companies have already complied with the rule, many have argued it is unfair. Fidelity has been among the most vocal. Also on Wednesday, the Commission will discuss potential for a new anti-fraud rule under the Investment Advisers Act, and the definition of “accredited investors” under the Securities Act of 1933. The regularly meeting is scheduled for 10 a.m. on Wednesday, Dec. 13 at the SEC headquarters auditorium.