The Securities and Exchange Commission yesterday denied a petition from the Investment Company Institute requesting the SEC adopt a rule regulating portfolio investment programs under the same regulations as mutual funds.

The ICI sought to have the products, commonly known as stock baskets or folios, regulated under the same rules as mutual funds because it believes the products provide many of the same benefits and risks. The ICI also claimed that folio products raised a potential threat to shareholders because they are similar in nature to funds but do not provide the same level of investor protection.

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