A federal appeals court cast doubt on new regulations for the mutual fund industry, ruling Tuesday that regulators must take another look at two key issues.
In a 3-0 ruling, the U.S. Court of Appeals for the D.C. Circuit said the rules must be returned to the Securities and Exchange Commission. There, they will undergo scrutiny on the costs that mutual funds would incur to comply and consideration of alternatives to the condition that the chairman of each mutual fund be independent. The regulations also require that at least 75 percent of the directors at each fund be independent.