Because of the added costs that would be tacked onto mutual funds, a rule mandating independent board chairmen is a bad idea, the U.S. Chamber of Commerce said Thursday, The Wall Street Journal reports.
In fact, the Chamber went a step further, suing the Securities and Exchange Commission over the rule on Sept. 2, filing the case with the United States District Court for the District of Columbia. And now it has filed papers in the U.S. Court of Appeals D.C. Circuit. The Chamber contends that the SEC does not have the authority to make rules for mutual funds.