London AFX – UK funds managers have welcomed the Financial Service Authority’s latest step towards opening up hedge funds to ‘significant’ demand in the retail sector, but in the same breath have expressed deep concerns over the tax regime that will apply to the proposed structures.
The FSA said on Tuesday that with consumers increasingly able to gain exposure to hedge funds in a variety of ways, ‘the time is right’ to introduce retail-orientated hedge funds of funds within its regulatory regime. It has issued a consultation paper proposing a system of Funds of Alternative Investment Funds — or Faifs.
Specialist fund of funds managers such as Baring Asset Management, New Star Asset Management and F&C Asset Management PLC have all said the proposals are encouraging.
