A ruling by the appeals court in the Chamber’s first lawsuit against the SEC required the Commission to add details to the rule about compliance costs and alternative approaches. The rule requires that the chairmen of mutual fund boards, as well as 75% of a board’s directors, are to have no direct ties to the company that manages the fund’s assets. The Chamber’s first lawsuit argued that the SEC had exceeded its authority and violated legal procedures.
A little more than a week after the court sent the rule back for alterations, the SEC re-approved the rule (See SEC to Add More Detail to Independent Fund Director Rule ). The Chamber filed suit again saying the SEC didn’t properly consider the appeals court ruling and gave little effort to altering the rule (See Chamber Again Battles SEC Fund Independence Rule ).
The US Chamber of Commerce requested that the court delay implementation of the rule while it considers the second lawsuit, Thompson.com reports.