As mutual fund companies turn out derivatives- and leveraged-laden offerings, regulators are becoming increasingly concerned that funds, and the financial industry at large, are forgetting the lessons of the Great Recession by returning to complicated, high-risk products.

With the Dow crossing 11,000 last week and the economy on the mend, fund managers are beginning to look for creative ways to spike performance and meet demand for non-correlated securities, but regulators are wary about letting them make the same mistakes.

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