LONDON: Scandinavia is raising the pressure on financial regulators across Europe to get tough on allegations of “index hugging” – where active investment funds may be misleading clients by covertly tracking a stock index.
Sweden’s financial regulator has named 25 active funds run by some of the region’s biggest providers which appeared largely to mirror benchmark indices, while in Norway a consumer watchdog is seeking compensation for investors from the asset management arm of DNB – a lawsuit the bank is contesting.
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