Giving the Federal Reserve Board sweeping authority over financial services conglomerates would stifle creativity in the securities market and fail to protect investors, the head of the mutual fund industry's trade group said Monday.

Speaking to a large gathering of investment management executives, Matthew P. Fink, president of the Investment Company Institute, argued against a proposal in Congress that would make the Fed an "umbrella regulator." That structure would give the Fed authority to regulate a bank holding company as well as all of its subsidiaries, including securities firms and mutual funds.

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