|  | | 2004 News and Press Releases | | |
HEADLINE NEWS:
SEC Funding Comes With Strings Attached
AP Online. November 22, 2004
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EXCERPT: Funding for the Securities and Exchange Commission came with strings attached this year: Congress ordered the federal agency to justify its decision to require that mutual fund companies have an independent chairman. Lawmakers worked into the weekend to adopt a massive bill funding the federal government in fiscal 2005, which began Oct. 1. Congress authorized the SEC to receive $856 million of funding, and called for it to submit a report by May 1 to the Senate Appropriations Committee showing "justification" for its controversial fund governance rule. The requirement is less intrusive than what had been sought by Sen. Judd Gregg, R-N.H., and reflects a compromise with House members such as House Financial Services Committee Chairman Michael Oxley, R-Ohio, and Rep. Barney Frank, D-Mass., the committee's senior Democrat, who strongly support the SEC's action. The SEC voted 3-2 this summer to require that 75 percent of fund directors, including the chairman, be independent of the fund company starting in 2006. |
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