Because of the added costs that would be tacked onto mutual funds, a rule mandating independent board chairmen is a bad idea, the
In fact, the Chamber went a step further, suing the
- In July, the SEC voted 3-2 in favor of 75% mutual fund board independence, with an independent director. The reason for the SECs new rule was to reduce the possibility of conflicts of interest on fund boards, which are supposed to protect investors best interests.
While the new rule does not take effect until 2006, the costs are already "imposing immediate and irretrievable costs," the Chamber said. The costs of searching for those independent chairmen, the Chamber said, are already taking their toll.
__