LONDON (Reuters) – The European Union\u2019s markets watchdog launched a review on Wednesday to assess whether customers in the bloc\u2019s 10.8 trillion euro investment funds sector are being overcharged.<\/p>\n
The European Securities and Markets Authority (ESMA) said its joint review with national regulators in the EU27 will assess the compliance of funds with the \u201cobligation of not charging investors with undue costs\u201d.<\/p>\n
The review is the latest push by EU regulators to ensure value for money in the funds sector, and it will follow guidance set out by ESMA last year.<\/p>\n
\u201cEnsuring greater convergence in the supervision of costs is an integral part of ESMA\u2019s broader efforts on the cost of retail investment products and is key to improving investors\u2019 confidence in financial markets and reducing costs associated with obtaining financial products,\u201d ESMA said in a statement.<\/p>\n
The funds being scrutinised are regulated under the bloc\u2019s \u201cUCITS\u201d rules, seen as a global benchmark in investment funds.<\/p>\n
Britain, which is no longer part of the EU, has also been scrutinising value for money at investment funds.<\/p>\n