The Financial Services Authority is proposing to allow retail consumers access to retail funds of hedge funds, but appears to suggest they should only be distributed with financial advice.
UK investors can now invest in hedge funds, for example, through structured products but there has, until now, been no direct access to funds made up of hedge fund investments so the FSA is introducing an alternative investments regime which introduces consumer safeguards. More specifically, details of CP 07/6: Funds of Alternative Investment Funds suggest the FSA is looking for feedback on whether FAIFs should only be sold to investors who know what they are doing or when accompanied by financial advice because these products are considered largely unsuitable for the average consumer with...
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