Fraud office to look into ETFs

THE Serious Fraud Office (SFO) has launched a probe into the burgeoning market for Exchange Traded Funds (ETFs) to establish whether it has the tools to prosecute wrongdoing in the industry.

The agency, which prosecutes white collar crime, is examining the risks posed by the products and to what extent they could be open to criminal conduct in future. Several regulators have raised fears over a lack of transparency around synthetic ETFs.