For the third time, a federal court has sent rules governing the mutual fund industry back to the Securities and Exchange Commission for further reflection on the costs of the changes.

In a 3-0 ruling, the U.S. Court of Appeals for the District of Columbia Circuit voided SEC regulations mandating that fund board chairman and three quarters of fund directors have no direct ties to the manager of the fund . The court said that the agency violated the Administrative Procedures Act by failing to adequately examine the potential costs to the mutual fund industry before adopting the rules.

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