The U.S. Securities and Exchange Commission’s authority to regulate mutual funds is being undercut by a panel of regulators assigned to examine threats to the broader economy, Commissioner Luis Aguilar said.

The Financial Stability Oversight Council (FSOC), which is led by Treasury Secretary Jack Lew, has cut commission members out of discussions over the risk posed by large asset-management firms such as BlackRock, Aguilar said in a speech Wednesday at a Mutual Fund Directors Forum conference in Washington.

The SEC and Treasury’s Office of Financial Research, which provides support to the FSOC, have differed over efforts to study the $53 trillion asset-management industry.

The research office wrote in a September report that money managers could pose threats to the U.S. financial system when reaching for higher returns, herding into popular asset classes or amplifying price movements with leverage.

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The study had “significant factual and analytical defects” and shouldn’t be used as the basis for policy decisions, Aguilar said in his speech.