©2005 Investment Company Institute. All rights reserved. Information may be abridged and therefore incomplete.
Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[19093]
August 11, 2005
TO: BOARD OF GOVERNORS No. 36-05
CLOSED-END INVESTMENT COMPANY MEMBERS No. 44-05
SEC RULES MEMBERS No. 92-05
SMALL FUNDS MEMBERS No. 70-05
RE: COURT OF APPEALS GRANTS REQUEST FOR STAY OF FUND GOVERNANCE
STANDARDS
Yesterday, the U.S. Court of Appeals for the District of Columbia Circuit issued an order
unanimously granting a U.S. Chamber of Commerce emergency motion requesting that the
compliance date of the contested fund governance standards be stayed pending judicial review.
The contested standards, which would require that 75 percent of a fund board and the board
chairman be independent, had been scheduled to take effect in January 2006. The Chamber of
Commerce challenged these standards for a second time after the Commission, responding to a
court remand, reaffirmed the rule by a 3 to 2 vote.
The court also directed the parties to brief the issue of whether the Commission had the
authority to act on the court’s remand prior to the issuance of the court’s mandate sending the
case back to the SEC. The briefing schedule set by the court calls for the final briefs to be
submitted November 14 and oral arguments to be scheduled on the first available date
following the completion of briefing. A copy of the court’s order is attached.
Jane G. Heinrichs
Assistant Counsel
Attachment (in .pdf format)
Note: Not all recipients receive the attachment. To obtain a copy of the attachment, please visit our members
website (http://members.ici.org) and search for memo 19093, or call the ICI Library at (202) 326-8304 and request the
attachment for memo 19093.