FSA set to unveil new retail FAIF proposals

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THE FSA is preparing to issue an update on its proposals for regulating retail-oriented Funds of Alternative Investment Funds (FAIFs) in the next few weeks, irrespective of the resolution of outstanding taxation issues.

Plans to introduce vehicles which allow UK retail consumers to invest in funds of hedge funds and other alternative investments into the regime for Non-UCITS Retail Schemes (NURSs) had been postponed following the emergence of a raft of taxation obstacles. In Consultation Paper 07/6 Funds of Alternative Investment Funds (FAIFs), published in March last year, the FSA mooted several proposals to progress the development of FAIFs. These included: relaxing the 20pc investment restriction into unregulated collective investment schemes for NURSs; applying principles-based due diligence guidan...

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