The Bernie Madoff
scandal has prompted the European
Union to launch a review on how mutual-fund rules are implemented around the 27-country-bloc,
An EU spokesman told the wire service that the EU is looking at how governments enforce rules that require EU-regulated funds to safeguard client assets.
A fund is "liable for losses due to failure to perform its duties or improper performance," Bloomberg quotes EU spokesman Oliver Drewes as saying.
The Madoff scandal has caused a tiff between France and Europe's biggest market for EU-regulated funds, Luxembourg. Also, Oddo & Cie
, a French fund manager, has filed suit against UBS
, who serves as custodian of a Luxembourg fund that invested with Madoff, according to the report.
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