Mercer Global Investments Management Limited

The Central Bank has determined the appropriate fine to be €168,000, which was reduced by 30% to €117,600 in accordance with the settlement discount scheme provided for in the Central Bank’s Administrative Sanctions Procedure. Fund management companies such as MGIM are responsible for ensuring prospectuses and key investor information documents issued in respect of funds they manage contain information necessary for investors to be able to make informed decisions regarding the investments proposed to them. The requirements for accurate prospectuses and key investor information documents are an essential part of the UCITS regulatory framework. One of the key features of any sound regulatory system is ensuring that firms and their products meet the appropriate standards in order to enter the financial services industry in the first instance. Effective gatekeeping by the Central Bank relies on accurate and complete information being submitted by firms seeking fund authorisation, as part of the assessment of their applications and in ongoing supervision. This investigation found that MGIM failed in its obligations to both investors and to the Central Bank by not including required information regarding index-tracking strategy in the prospectuses and KIIDs of five investment funds managed by MGIM. Compliance with the regulatory requirements placed on fund management companies is key to ensuring good governance, the protection of investors, the integrity of the market and systemic stability.