The Investment Company Institute quickly followed the SEC's lead Wednesday morning by pledging their support on the contentious issue of requiring independent chairmen of fund boards. SEC commissioneres approved the proposal today in a 3 to 2 vote.

While the ICI supported all of the reform proposals passed today, the trade organization had previously called for independent directors to choose their own chairmen.

"With respect to whether mutual fund boards should be chaired by an independent director...[t]he rulemaking process overseen by the SEC has afforded all concerned parties ample opportunity to make known their views on this and other proposed reforms. The result was a vigorous and informed debate on an important policy question that the SEC today has resolved," said ICI President Paul Schott Stevens.

The ICI wasn't the only one to issue a rapid-fire statement on the SEC's vote today.

Senator Peter Fitzgerald (R, Illinois) also voiced his support for the newly approved independent chairman rule: "There will be a new tone at the top among those entrusted with overseeing the hard-earned savings of 91 million investors...[t]he result will be lower fees for investors," stated Fitzgerald.

Fitzgerald is the primary sponsor of the Mutual Fund Reform Act of 2004, a bill that also calls for a supermajority of independent directors and an independent chairman of a fund's board.

The Independent Directors Council also issued a statement supporting the SEC's vote.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE