The Serious Fraud Office has launched a review into how exchange-traded funds are marketed and whether it has the capability to prosecute any wrongdoing in the industry.
It has been consulting with bankers and lawyers to see if there is in risk of criminal conduct in the sales process of these funds.
The review comes after the Financial Policy Committee warned about the lack of transparency in the ETF market.
An SFO spokesman the review will not target individual ETFs but will identify any potential risks in the sector.
He says: “We do regular landscape scanning about what problems there might be before they happen. We have consulted several bodies and out of that there has come a slight concern about such things like exchange-traded funds.
“It is not damning the whole industry, or suggesting we are going after individuals or companies, but to review some of the things that concern us.”