WASHINGTON - Paul Roye, the Securities and Exchange Commission's director of the division of investment management, issued a wakeup call for the mutual fund industry, telling attendees that the industry's place in the market is not assured, during remarks at the Investment Company Institute's annual convention here.

Roye told the history of the demise of the once-dominant railroad industry in the U.S., drawing obvious parallels to the fund industry's problems and those that led to the downfall of the rail industry. He said over-regulation, the railroad's slow moving political nature and the fact that it didn't care about its customers were all contributing factors. "The mutual fund industry must be mindful that its place in the economy is not guaranteed," Roye said.

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