Jun
25
2004
0
SEC adopts new rules for mutual fund chairman independence
By David Luhman
The Securities and Exchange Commission on June 23, 2004 adopted new rules to help ensure that mutual fund boards will be independent of the investment advisory company often connected with the fund.
Although most investors associate their mutual fund with an investment advisory firm, the mutual fund and the advisory firm are two separate entities.
For example, the Fidelity Magellan fund is an independent company (an investment company) which hires Fidelity Investments to provide investment advice to the investment company.
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