The FSA is to consult on proposals to allow retail investors access to authorised funds of hedge funds, in order to widen investment options and enable entry into this fast growing area of the market.
The authorised funds would not be allowed to invest in all types of hedge funds, and would come with strict rules governing the handling of investors monies and liquidity criteria in regards to the underlying funds. Structural and operations safeguards would include a proposal for an independent depository. The decision to consult follows the publication of a feedback statement on the regulator's previous discussion paper 05/3, which essentially threw out for discussion various options for offering a greater range of investment options in the retail market. Because retail investors ca...
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