(Bloomberg) -- The U.S. Securities and Exchange Commission’s authority to regulate mutual funds is being undercut by a panel of regulators assigned to examine threats to the broader economy, Commissioner Luis A. Aguilar said today.

The Financial Stability Oversight Council, which is led by Treasury Secretary Jacob J. Lew, has cut commission members out of discussions over the risk posed by large asset management firms such as BlackRock Inc., Aguilar said in a speech at a Mutual Fund Directors Forum conference in Washington.

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