ICI Issues Statement on SEC’s Fund Governance Proposals

Washington, DC, October 13, 1999 - The following is a statement from Investment Company Institute President Matthew P. Fink on the Securities and Exchange Commission’s announcement today of  proposed rules concerning mutual fund governance.

"The mutual fund industry and the Securities and Exchange Commission have long recognized the critical role of independent directors in the governance of mutual funds.

"The mutual fund industry is fully committed to enhancing the independence and effectiveness of mutual fund directors in order to protect the interests of the nation’s 83 million mutual fund investors. To that end, earlier this year, an Advisory Group formed by the Investment Company Institute recommended, and the Institute’s Board of Governors unanimously endorsed, a series of voluntary best practices to make this strong system of governance even stronger.

"Today’s rule proposals by the Securities and Exchange Commission are directed at further strengthening the effectiveness of independent mutual fund directors. The Institute appreciates the expeditious manner in which the SEC developed these significant rule proposals and interpretive guidance.

"The Institute welcomes the opportunity to review the SEC proposals in anticipation of submitting written comments on them."

The Investment Company Institute is the national association of the investment company industry. Its members include mutual funds, closed-end funds and unit investment trusts.