To Regulate Folios Like Funds

The Securities and Exchange Commission has denied a petition from the Investment Company Institute requesting it 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 they provide many of the same benefits and risks as mutual funds. The ICI also claimed that folio products raised a potential threat to shareholders because they are similar to funds but do not provide the same level of investor protection.

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