Germany’s securities regulator BaFin is launching an investigation of mutual fund trading practices. Spurred by the ongoing fiasco in the U.S. and recent memory of a previous fund scandal a few years ago, German regulators want to make sure that its mutual fund industry is on the up and up.

"It was not as prevalent in Germany as in the United States, but there are always opportunities for arbitrage," one fund manager told Reuters. "Most of the fund management firms now try to protect themselves against such strategies."

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