The battle to overturn newly enacted regulations calling for independent chairmen to head mutual fund boards heated up again Wednesday after the U.S. Chamber of Commerce filed a biting legal brief accusing the Securities and Exchange Commission of admitting that some independent directors are ineffective, Dow Jones Newswires reports.

The chamber said that the SEC has admitted that many independent directors are "asleep." In its new brief, the chamber said: "It does not ordinarily follow that when personnel are 'asleep' or indifferent, the solution is having more of them."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.