Washington, D.C. -- Senator Daniel K. Akaka (D-HI) today applauded the efforts of the Securities Exchange Commission (SEC) to adopt proposals that will improve the governance of mutual funds and mirror the Mutual Fund Transparency Act, S. 1037. The SEC is expected to reissue a rule that requires an independent chairman and 75 percent of board members be independent. This rule is facing a legal challenge.

Senator Akaka said, "I believe that the Commission must go forward with the independence rule and address the concerns raised by the federal appeals court. Several of my colleagues have written to the Commission saying that the reissuance of the rule would be inappropriate. I respectfully disagree."

"To be more effective, the boards must be strengthened and made to be more independent," Senator Akaka said, "Independent directors must have a dominant presence on the board to ensure that investors interests are the paramount priority."

Senator Akaka praised the work of Chairman William Donaldson who has announced his resignation. Senator Akaka says he looks forward to a thorough discussion on mutual fund independence requirements with Representative Christopher Cox (R-CA) who has been nominated to succeed Donaldson.

"I introduced legislation to bring about structural reform to the mutual fund industry, increase disclosures in order to provide useful and relevant information to mutual fund investors, and restore trust among investors," stated Senator Akaka.