EU watchdog calls for tighter regulation of investment funds

European investment funds are preparing to face tighter regulation in the wake of the Madoff scandal.

In a report, the High Level Group on Financial Supervision in the European Union - chaired by Jacques de Larosiere, former managing director of the International Monetary Fund and ex-governor of the Bank of France - recommended developing "common rules for investment funds in the EU, notably concerning definitions, codification of assets and rules for delegation".

The report came on the day that

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