The Central Bank of Ireland (the “Central Bank”) on 18 July 2019 published a ‘Dear Chair’ letter to the industry (the “Industry Letter”) highlighting the key supervisory issues identified in a thematic review of Irish domiciled UCITS investment funds (“UCITS”) on the subject of closet indexing (the “Review”), and setting out certain actions to be taken to mitigate any concerns.

While no findings of closet indexing were made, the Industry Letter cites instances of poor governance and control by boards where investors were not given sufficient or accurate information in the prospectus or key investor information documents (“KIIDs”) and a number of other transparency issues and sets out actions that boards should take to address these concerns...