TIAA-CREF, the financial services provider for education and research employees with $300bn (€245.4bn) of assets under management, has adopted tougher rules to help restore investor confidence in the US mutual fund industry.

It is calling for all funds to have independent boards, eliminate abusive practices, and increase transparency and fair treatment to all shareholders and is backing the proposal by US regulator, the Securities and Exchange Commission that three-quarters of mutual fund directors be independent. It said that over time fund boards should be made up entirely of independent directors.