The Central Bank of Ireland is investigating almost 200 investment funds for possible mis-selling after the financial regulator launched a probe into the practice of asset management companies hawking expensive, supposedly market-beating funds that only track the index. While the Irish regulator said it had carried out a “detailed inspection” of 2,550 funds, there is a particular disquiet about the behaviour of the financial supervisor in Luxembourg, which is home to almost 4,000 funds and is the largest fund domicile in Europe.
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BETTER FINANCE, the Brussels based investor campaign group, also singled out Luxembourg in a study conducted on closet trackers during 2017 and 2018m claiming that 47% of all funds it identified as closet trackers were domiciled in the country.
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