Wednesday, June 14, 2006

MORE COMMENT ON FUND CONFLICT RULE --
In court papers, the Securities and Exchange Commission said it would give interested parties 60 days to file comments about the rule, which requires fund boards to have independent chairmen. The rule also requires 75% of a fund's board to have no ties to management.

Passed by the SEC for the second time last June, the rule has been challenged in federal court by the U.S. Chamber of Commerce, a business trade group. The U.S. Court of Appeals for the D.C. Circuit handed it back to the SEC in April after ruling the agency didn't allow comment on the estimated costs of complying with the rule.