The EFAMA conference was a good opportunity for Steven Maijoor, Chair of the European Securities and Markets Authority, to recall the ongoing research into the practice of closet indexing by European fund managers and to reiterate assurances that the financial industry’s regulator will continue to take a look at this harmful activity for both the consumer and industry side.
Reporting on this issue, Jennifer Thompson of Financial Times mentioned BETTER FINANCE’s ongoing effort to replicate the study and provide a clearer picture of the practice than the rather prudent study carried out by ESMA so far. The article noted that ‘BETTER FINANCE, an influential investor rights group, released its own study and named 80 companies, including Schroders and Fidelity International, which it said potentially sold such funds’.
Read here:
- FT Article: European markets watchdog steps up scrutiny of closet trackers.
- BETTER FINANCE’s Closet Indexing Report, Press Release and the dedicated website: www.checkyourfund.eu.