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CFA Level 2
Corporate Finance

Corporate Governance and Regulatory Requirements

Medium Corporate Governance Regulatory Environment

In the context of corporate governance, regulatory bodies play a critical role in ensuring transparency and accountability within public companies. Various regulations have been established to safeguard investors' interests and uphold market integrity. In the United States, for instance, entities such as the Securities and Exchange Commission (SEC) enforce rules that govern the behavior of public companies. Corporate governance frameworks often rely on adherence to these regulations to maintain investor trust and confidence.

Which of the following regulatory requirements is specifically designed to enhance corporate governance by mandating the independence of corporate directors?

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