Securities Industry Association President Lackritz’s Statement On The SEC’s Mutual Fund Board Of Directors Rule

Securities Industry Association President Marc E. Lackritz today called on the Securities and Exchange Commission to be thorough and circumspect in reviewing its rule requiring mutual funds to have independent chairmen. The U.S. Court of Appeals for the D.C. Circuit recently instructed the SEC to reexamine the rule, stating the commission did not provide a realistic estimate of the costs of implementation or adequately explore alternatives to the rule.

“It is important to both investors and the securities industry that the Securities and Exchange Commission continues as the preeminent national regulatory authority for the markets and the industry,” Lackritz said. “The commission’s careful consideration, extensive study, and thorough research of any proposed rule, in accordance with due process and fundamental fairness, are key to its fulfilling that role. If it acts in a hasty manner, the SEC undermines its authority and reputation.”