Arthur Levitt, SEC chairman, March 22 told the mutual fund industry...

Arthur Levitt, SEC chairman, March 22 told the mutual fund industry that four changes to mutual fund goverance are "just the beginning.’’ At an Investment Company Institute conference in Palm Desert, Calif., Mr. Levitt said the SEC will act immediately to develop four new measures for mutual fund boards of directors: that the majority of directors be independent; that independent directors appoint any new independent directors; that legal counsel for directors be independent from management; and that shareholders should be given more information to help them judge the independence of fund boards. Mr. Levitt promised that more reforms of mutual fund governance are being pursued. In response, the ICI today formed an advisory group to prepare a report on the best practices of mutual fund boards of directors. John C. Brennan, ICI chairman; representatives from five fund companies; and outside experts, as needed, will form the advisory group. The report will be submitted to the SEC by mid-summer.