WEST PALM BEACH, FL (www.HedgeCo.Net) – The U.S. Chamber of Commerce said it has filed a brief in its lawsuit against the Securities and Exchange Commission, raising some objections to the SEC�splans to institute new rules for the mutual fund industry.
The brief, was filed on Monday in federal district court, the law suit is against SEC�s proposed plans to diminish the power of fund managers. The SEC new rule requires 75% of the board of directors of mutual fund firms to be independent of the management.
Stephen Bokat, general counsel of the Chamber of Commerce said, �this is a clear example of a federal agency overstepping its authority.” The SEC will have an opportunity to respond to such question before the trial which is scheduled to begin on April 15, 2005.
The law suit hopes to overturn the new SEC mutual fund laws which went into effect September 7. According to the argument of the Chamber of Commerce, the new SEC�s laws is at odds with the standard established by the Investment act of 1940 which mandates that 40% of the mutual fund boards consist of independent outsiders. According to the Chamber of Commerce, the SEC laws were introduced and passed without using or relying on empirical data.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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