Proposals being considered by the Financial Services Authority (FSA) could give private investors access to hedge funds in the UK.
Reports state that the watchdog is planning a consultation into whether or not to widen the scope of UK-based funds it authorises, including funds of hedge funds.
In the eventuality of a positive outcome, retail access could be granted to hedge funds, allowing private investors to invest in these funds. The appeal of hedge funds lay primarily in their ability to offer broader scope for investment decisions.
“Given the reality of the contemporary retail market, it seems sensible to permit the marketing of funds of hedge funds through an authorised, onshore vehicle,” commented Clive Briault of the FSA, according to the Times.
“These onshore funds of funds would benefit from the protections already in place for authorised funds.”
