SEC Cites Scandals in Adopting Fund Rules

Hume, Lynn
January 2005
Bond Buyer;1/14/2005, Vol. 351 Issue 32050, p4
Trade Publication
The article reports that U.S. Securities and Exchange Commission (SEC) adopted rule changes requiring mutual fund board chairmen and 75 percent of the directors to be independent due to a series of scandals in the fund industry involving conflicts of interest on the part of fund managers caused investors to lose about 1.25 billion dollar, the SEC told an appeals court this week. In its brief, the SEC told the court that its adoption of the rule changes was reasonable and necessary in light of a series of mutual funds scandals that showed that independent director oversight of the funds needed to be strengthened.


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