The Irish regulator will launch the "largest ever investigation in Europe" into the fees asset managers charge investors in order to assess whether the investment products offer "value for money", reports the Financial Times.
The probe comes after several countries launched investigations into closet trackers in recent months, including Sweden, the Netherlands and Luxembourg.
In March 2015, the Central Bank of Ireland said “there [was] no plan at [that] stage to undertake a review of closet trackers or other replicating funds […] in 2015." However, with fund fees being scrutinised for "closet tracking", the Irish regulator decided to focus on "fees charged by Irish-domiciled investment funds" in 2016, furthering the current review of closet trackers.
A much needed probe as Guillaume Prache pointed out: “Overall, fees are too high in Europe and still not always transparent".
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