Aima says it supports the FSA’s efforts to create a better regulatory environment for funds of alternative investments funds. It strongly believes that funds of alternative investment funds should be available to retail investors to allow them indirect access to hedge funds but argues the FSA proposals on retail access will prove to be detrimental to the popularity of Faifs and their managers.
The trade body says it believes it is vital to ensure consistency between Faifs and offshore funds, as the underlying funds of a Faif are likely to be based offshore.
Deputy chief executive Andrew Baker says: “On the whole, the proposed rules are appropriate and proportionate and a strong signal from the UK Government that hedge funds are to be regarded as mainstream investments.”
But he warns there are important areas to work through for the regime to be “workable and successful both for the industry and the intended retail investors.”