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ICI Issues Statement on SEC Fund Governance Rules

Washington, DC, January 3, 2001 - The following is a statement from Investment Company Institute President Matthew P. Fink on the Securities and Exchange Commission’s announcement today of new rules concerning mutual fund governance:

"Mutual funds are the only companies in the country that are required by law to have independent directors. This system of overseeing the interests of mutual fund shareholders has helped the industry avoid systemic problems and contributed significantly to public confidence in mutual funds. In fact, the U.S. Securities and Exchange Commission has long recognized that independent directors play a critical role in the governance of mutual funds.

"The Institute will study the new SEC rules and work with our members in implementing them. In addition, the Institute will continue to work with our members in adopting the series of best practices recommended by the Advisory Group on Best Practices for Fund Directors that were unanimously endorsed by the Institute’s Board of Governors in 1999."