(Bloomberg) -- The SEC has named David Grim to lead the agency’s effort to tighten mutual-fund rules at a time when regulators are studying whether the largestfund companies pose systemic risk.

Grim, 45, will take the helm at the SEC’s investment management division as the unit scrambles to draft five rules including ones governing how funds manage risk posed by holdings of hard-to-sell assets and derivatives. The work is being done as the Financial Stability Board, a group of regulators from around the world, examines whether funds managed by firms such as BlackRock Inc. and Fidelity Investments should face stricter oversight typically reserved for the biggest banks and insurers.

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