A federal appeals court is slated to hear the U.S. Chamber of Commerce's challenge to the SEC's independent chairperson rule on Friday, reports Marketwatch.

The trade organization is asserting that the SEC overstepped its authority in mandating that mutual fund boards' be chaired by an independent director.

The three-judge panel is expected to reach a decision by the end of summer.

Separately, the SEC is coming up against a May 1 deadline to issue a Congress-mandated report on how funds with independent chairmen perform compared to funds without independent chairman. The SEC is required to act on the recommendations of the report by January 1, 2006.  

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