THE FSA today unveiled its consultation paper on fund of hedge funds for retail investors, increasing the likelihood the products could be included in portfolios by the end of 2007.
In the document, the FSA confirmed it plans to expand the Non UCITS Retail Scheme (NURS) regime to accommodate regulated funds of hedge funds. The key regulatory change would be to lift a rule on NURS funds preventing them from investing more than 20pc in unregulated schemes. The new funds of alternative investment funds (FAIFs) will be able to invest 100pc in unregulated schemes under the FSA’s proposals. They will also be able to invest in a more limited capacity in ‘unapproved’ securities in line with existing NURS funds. The paper proposes the funds will be able to invest in any unr...
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