Mercer unit fined over potential misleading of investors

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Mercer unit fined over potential misleading of investors
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Central Bank found asset manager failed to tell customers some funds were passively tracking indices

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The Central Bank said its thematic review of actively managed funds identified issues around the effectiveness of investor disclosure, most significantly that investors “were not always given sufficient or accurate information about the fund’s investment strategy” in the prospectus and key investor information documents provided to them. It noted that failure to fully inform clients meant they might not be aware of the risks associated with particular investment choices among other things.

“Fund management companies such as MGIM are responsible for ensuring prospectuses and key investor information documents issued in respect of funds they manage contain information necessary for investors to be able to make informed decisions regarding the investments proposed to them. The requirements for accurate prospectuses and key investor information documents are an essential part of the UCITS regulatory framework.

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