Calls for 'average' IFAs to avoid complex funds of hedge funds

Investment experts argue the regulator should enforce additional levels of qualifications on advisers seeking to recommend the products. They welcome widening the scope of investments products available, but argue most consumers lack both the "experience and risk tolerance" to invest in them. The FSA last week unveiled a new regime allowing retail consumers to invest in Funds of Alternative Investment Funds (FAIFs), but warned advisers they must understand the products before making a recommendation. Under the new regime, FAIF managers can wait 185 days before paying redemptions, b...