FSA decides not to relax the rules on hedge funds sold to the retail market

The UK Financial Services Authority's (FSA) decision not to relax rules governing the marketing of hedge funds to retail investors has been met with a mixed reaction from the industry. While most parties were positive about the FSA's commitment to continued dialogue and agreed with its decision that hedge funds should not be marketed directly to the retail market, there was disappointment that the FSA did not choose to authorise open-ended retail funds of hedge funds. The FSA consultation period began six months ago with the publication of DP16, a discussion paper on the marketing a...