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Article: Fallout From 03: Law and Technology: One More Time Around for the SEC's Mutual Fund Independence Rule.(United States. Securities and Exchange Commission)
- Article from:
- Securities Industry News
- Article date:
- April 17, 2006
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A funny thing appears to have happened on the way to implementing the Securities and Exchange Commission's long-delayed mutual fund governance reforms: In the wake of an April 7 court decision to send them back to the SEC for a second time, experts on both sides say that the fund industry may have rendered the rule largely superfluous by implementing the reforms voluntarily.
The rule in question is the capstone of the reforms ushered in by the SEC beginning in 2003 after the market-timing and late-trading scandals came to light. It requires that at least 75 percent of the members of mutual fund boards be independent--including the chairman. The U.S. Court of ...