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From: Jim Reagan
SEC Chairman Christopher Cox Dear SEC Chairman Cox, Mutual funds are an increasingly important savings vehicle for tens of millions of working Americans like me. We are the owners of these funds and we bear the risks if they are dominated by self-interested insiders. We look to the Securities and Exchange Commission (SEC) to protect us. I am writing to express my strong support for the proposed rule requiring that mutual fund boards have an independent chairperson and at least 75 percent independent directors. These rules were among the most important reforms adopted by the SEC in the wake of the mutual fund trading and sales abuse scandals. A recent study by AFSCME and The Corporate Library found mutual funds provide a rubber stamp for excessive management pay, supporting more than three-quarters of all management pay proposals. Ninety percent of institutional investors think the current system overpays executives. We need independent directors to stand up to the excesses of the money managers. The Investment Company Act requires that mutual funds be managed in the interests of their shareholders. Requiring independent directors and chairpersons will help ensure this safeguard for the small investor, to make sure the little person gets a fair shake. This is a real and much needed reform whose time has arrived . I very strongly encourage you to do all that you possibly can to make sure that this necessary consumer protection is adopted and put into action as soon as possible . Recent conflicts of interest and other widespread abuses of trust within the financial community have conclusively demonstrated that these and additional reform measures need to be enacted now . Thank you for ensuring that the SEC meets its legal and fiduciary obligations to protect and safeguard America's small investors . Sincerely, Jim Reagan |