SEC Mandates Independent Chairs For Mutual Funds
A new Securities and Exchange Commission rule mandating that mutual fund boards be comprised largely of independent directors and have an independent chairman is drawing praise from the American Council of Life Insurers.
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The rule is probably overdue in the mutual fund industry in light of the abuses uncovered over the last several years, says Carl Wilkerson, vice president and chief counsel with the Washington-based ACLI.
Wilkerson notes that the formal rule has not been published as of this writing, but he says that based on the discussion at the SEC meeting where the rule was adopted, it does not appear to have an impact on variable product unit investment trusts which fund separate accounts.