The UK's attempt to allow retail hedge fund access through the Qualified Investor Scheme (QIS) has f...
The UK's attempt to allow retail hedge fund access through the Qualified Investor Scheme (QIS) has failed to attract any attention, with the interest going instead to unregulated schemes.
The main problems for QIS are the doubts concerning the tax treatment of such schemes (see 'UK to lose out to offshore rivals' story above).
Dan Waters, director of retail policy and asset management sector leader for the FSA, said: "We have only been approached by one asset management group to set up a QIS so far." The major issue according to Waters is that the Inland Revenue has yet to define the tax treatment of QIS. "Until the tax issue is settled we don't expect many approaches for approval," said Waters.
In the retail space, the FSA has had more success with the unregulated collective investment scheme. So far, there have been six funds of hedge funds launched in the UK. The FSA has also approved a hedge fund index tracker and a structured deposit account for hedge fund index trackers.
The FSA is also currently undertaking a thematic review of the hedge fund industry and Waters expects a systematic change in the number of hedge funds that are relationship managed to rise from the current 15. Waters said: "The report will be available late in the summer."
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