Mutual Fund Regulation Was Improperly Imposed
A federal appeals court has ordered the Securities and Exchange Commission to reconsider a recently enacted rule requiring mutual funds to be overseen by independent chairmen. The decision said that the SEC failed to properly consider the costs of the corporate governance rule passed last June at the urging of NY attorney general/gubernatorial candidate Eliot Spitzer. The only individual to be charged by Spitzer in the mutual fund late trading scandal was recently acquitted. The ruling probably spells relief from this costly and unnecessary regulation.