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| 2003
News and Press Releases |
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HEADLINE:
Trade Group Faults NYSE Overhaul --- Mutual-Fund Organ ICI Wants To See Board Seats Earmarked For Big Investors
By: Gaston F. Ceron - Dow Jones Newswires
The Wall Street Journal. December 3, 2003
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EXCERPT: The main lobbying group for the mutual-fund industry said that the New York Stock Exchange's planned overhaul doesn't go far enough, and that the Big Board should include large-investor representatives on its new board. In a letter to the Securities and Exchange Commission, the Investment Company Institute said that it questioned "whether the proposed changes will achieve the goal of the NYSE's proposal -- creating a governance structure that will better serve investors." The NYSE overhaul, which created a new board that the NYSE says is independent, has been endorsed by exchange members but still needs SEC approval. The ICI said it wants explicit representation for investors on the board through "several" board seats that would be set aside for this purpose. The ICI also wants directorships for representatives of institutional investors such as mutual funds and pension funds. Additionally, the trade group said that the separate advisory panel that will provide counsel on issues such as market structure at the NYSE needs a greater "buy-side," or investor, voice. The new NYSE board does include Herbert Allison, a director on the old NYSE board and head of financial-services concern TIAA-CREF. But some institutional investors have indicated that they want significant representation on the board beyond just Mr. Allison. While the NYSE has undergone a governance crisis marked by the resignation of former Chairman Dick Grasso, the ICI currently is enmeshed in its own industry problems involving allegations of improper fund-share trading. A spokesman for the NYSE declined to comment on the ICI letter.
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