From: Barbara Coufal
Sent: August 14, 2006
Subject: File No. S7-03-04

SEC Chairman Christopher Cox

Dear SEC Chairman Cox,

I am a mutual fund investor. I, along with millions of working families, rely on the SEC to properly police the mutual fund industry to ensure that mutual funds work for investors rather than officers who engage in self dealing. We are the owners of these funds and we bear the risks if they are dominated by self-interested insiders. But we do not have the capacity to police mutual funds. The Securities and Exchange Commission (SEC) must protect us and be vigilant about it.

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.


Barbara Coufal