SEC chief defends turf amid regulatory reform

WASHINGTON (Reuters) - The head of the U.S. Securities and Exchange Commission defended her agency's role on Wednesday as the investors' protector, as the Obama administration considers the creation of an agency to supervise financial services products.

"I question pretty profoundly" any regulatory model that would try to move investor protection functions out of the SEC, the agency's chairman Mary Schapiro told reporters after an open meeting.

The U.S. Treasury Department is considering an agency that would protect consumers who buy financial products as part of the administration's plan to reform financial regulation, Congressional and industry sources have said.

The idea of a Financial Product Safety Commission, which could regulate financial products such as mutual funds, has support among consumer groups, but is opposed by the financial services industry.

U.S. officials met on Tuesday night to discuss the idea with experts and former officials. Schapiro told reporters "we have been engaged" and said she did not think that such a proposal was concrete at this point.

"The SEC's sole responsibility is investor protection and we will not flinch from that," she added.

(Reporting by Rachelle Younglai; Editing by Andre Grenon)