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Appeals court rules SEC must reconsider mutual fund governance rule

[JURIST] The US Court of Appeals for the DC Circuit Tuesday ruled [opinion, PDF text] that the US Securities and Exchange Commission [official website] should reconsider its rule that requires mutual funds to be run by boards with independent chairmen. The SEC originally enacted the rule to combat trading and sales abuses in the industry. Citing costs, the US Chamber of Commerce had opposed the new standard along with firms like Fidelity Investments and Vanguard Group, run by corporate "insiders.". The court only asked that the rule be reviewed, so it is possible that it will not be thrown out completely. Bloomberg has more.

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