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The report finds that abusive business practises which exploit the mutual funds for the benefit of some privileged investors are rare in Europe. However, improvements should be made to internal processes of management companies. CESR members have taken action to develop supervisory programmes and tools to increase their monitoring of potential cases of mis-practises.
CESR members have initiated regulatory changes or amended processes to reform the functioning of the collective investment management activity to avoid the possibilities of mis-practises. Such changes include requirements concerning the internal control mechanisms and fair value approaches used in the valuation of assets of investment funds.
A summary of the actions taken by each CESR member are included in the annex of the report.