(Bloomberg) -- Mutual and hedge fund managers dodged the toughest provisions of newly proposed U.S. pay rules designed to discourage excessive risk-taking on Wall Street.

Thanks to the way the proposal defines assets, even large managers such as BlackRock may qualify for the lightest regulation. The plan, stemming from the 2010 Dodd-Frank law, reserves its strongest restrictions for financial companies with $250 billion or more in assets, but that excludes holdings belonging to clients.

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