After months of lobbying, large asset managers such as BlackRock and Fidelity Investments won a battle in their fight against tighter regulation Thursday. A panel of top financial regulators agreed to revamp their review of asset management firms to focus on potentially risky products and activities rather than individual firms.

The shift by the Financial Stability Oversight Council lessens the likelihood individual asset managers will be labelled "systemically important"-a designation that would draw them in for greater oversight by the Federal Reserve.