BETTER FINANCE was mentioned on the topic of closet indexing in an article by Ignites Europe, the Financial Times’supplement for the funds industry.
The article reports on Luxembourg’s decision to launch a probe into closet tracking, with the Commission de Surveillance du Secteur Financier analysing thousands of funds to uncover any misbehaviour.
In a letter to ESMA in late 2014, BETTER FINANCE had called for an investigation into the issue across all major fund domiciles in Europe and named Luxembourg as one of the countries ESMA should look into, together with France, the UK, Ireland and Germany.
Steven Maijoor, chairman of ESMA, replied to our letter informing us that more information was being gathered and “further action from ESMA and/or national competent authorities” would eventually be considered.
Please find the article here (subscription required).
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