Hedge fund investments are soon to become more widely available to intermediaries, IMA delegates wer...
Hedge fund investments are soon to become more widely available to intermediaries, IMA delegates were told.
The UK tax treatment of hedge funds must be changed if the FSA decides to regulate managers for onshore retail distribution of their product, delegates heard.
The FSA floated the possibility of regulating onshore hedge funds in a discussion paper in August as a method of allowing for broader distribution to the UK retail market. UK retail investors can currently access hedge funds through offshore funds of hedge funds, usually listed in Dublin.
Charles Tritton, head of alternative investments at New Star Asset Management, said UK-domiciled and resident investors may be reticent about investing in onshore hedge fund products without changes to the way returns from onshore funds are taxed because onshore hedge funds rarely get distributor rule status so gains are treated as income for a typical investor.
Kevin Tomlin, head of collective investment schemes at the FSA, said there is no point moving to regulate hedge funds if the Inland Revenue is not going to make adjustments to allow investors to use them on the same footing as offshore vehicles.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till