WEST PALM BEACH, FL (HEDGECO.NET) – Under the FSA�s existing regulatory framework, hedge fund products may not be marketed and sold to retail consumers except in certain circumstances. For example,an appropriately authorized financial adviser can recommend them where they are considered suitable. Several EU nations such as Germany and Ireland have authorized retail hedge funds in theirmarkets, as retail hedge funds continue to achieve global acceptance.
The FSA has been reviewing the issue of hedge funds marketing for quite some time. The agency invited comments from hedge fund industry watchdogs such as the AIMA seeking general input from such groups in an effort to examine and issue new hedge fund rules in Great Britain.
The government agency is hoping to establish a less �prescriptive regulatory environment� for hedge funds, thereby reducing the current restraints on hedge fund managers. The new policies will now permit expert investors to purchase onshore and authorized FSA investment funds utilizing hedge fund trading strategies according to published reports.
The new authorized vehicles will utilize derivatives, may go long/short, and may borrow heavily for purposes of trading. Managers of such vehicles may charge performance fees, and establish their policies relating to when investors in those funds may sell their assets. The new FSA policies will go into force in April 2004 according to released statements.
The FSA regulates the UK�s financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime. The agency also aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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