Washington, D.C. - United States Senator Daniel K. Akaka (D-Hawaii) issued the following comment on the rules approved today by the Securities and Exchange Commission (SEC). Senator Akaka is the sponsor of the Mutual Fund Transparency Act of 2003 (S. 1822), legislation which would strengthen board independence, enhance the transparency of financial relationships, and require disclosure of financial relationships between brokers and mutual fund companies and of certain brokerage commissions paid by mutual fund companies.

"I commend the SEC for approving proposals that will improve the governance of mutual funds. The new SEC requirements for an independent chairman for mutual fund boards and an increased percentage of independent directors to 75 percent are significant steps towards ensuring that independent directors are better able to protect shareholders' interests. I am delighted that the Commission, under the leadership of Chairman Donaldson, has taken these bold steps to protect the 95 million American investors who have invested a significant portion of their financial security in mutual funds. These provisions mirror those in my Mutual Fund Transparency Act of 2003, which I introduced last year in order to restore public trust in the mutual fund industry.

"In addition to the regulatory actions taken by the SEC, the Senate must act on legislation to further strengthen the independence of mutual fund boards and prevent reforms from being rolled back in the future."