Subject: File No. S7-03-04
From: Thomas Bonito, CPA
Affiliation: New Jersey State Society of CPAs

June 14, 2006

Dear Commissioners:

I am and investor and a financial advisor. I fully support the Mutual Fund Governance Rule that requires the board of directors of most mutual funds to have an independent chair and a 75 percent independent membership.

The Governance Rule is a major impact rule that will give fund shareholders strong representation in the management of mutual funds, and will provide a fairer balance of power.

Stronger representation on behalf of fund shareholders should result in lower fund costs and higher returns. This result should more than balance any costs associated with compliance.

It is unfortunate that the Chamber of Commerce opposes the interests of mutual fund shareholders, many of which are also its members. But its view should not govern the outcome.

It is my contention that the economic impact of complying with this proposed rule will be favorable on balance to the mutual fund industry and to fund shareholders.


Thomas Bonito