View more on these topics

FSA asks if hedge fund rules should be eased

Hedge funds may soon be marketed direct to retail investors after an FSA consultation paper asking the industry to comment on plans to make them more accessible.

The paper, Hedge Funds and the FSA, asks the industry for feedback on whether it should be easier to invest in hedge funds to reflect the expansion in the market over the past few years.

Under the current rules, retail investors can only buy into long/short funds through IFAs, who must ensure that clients understand the products and the risks before they to invest in them as a small part of a diversified portfolio.

The news has been cautiously received by IFAs, with many remain unconvinced over the suitability of hedge funds for retail investors. But fund managers say a more liberal regime could see them enter the market.

FSA director of conduct of business standards Michael Folger says: “Just as some of our international counterparts have done recently, we are reviewing our regulatory regime in respect of hedge fund activities in the UK, particularly the sale and marketing of such funds. We come into this with an open mind.”

New Star corporate finance director Ravi Anand says: “It is a step forward but not as far as we had hoped. The FSA only seems to be paying lip service but if there was a change of legislation we would be encouraged to launch our own funds.”


Britannic focus on the Cam era

Britannic Money, best known as one of the pioneers of current account mortgages, has been in the news recently as the first lender to launch a sub-prime product with Cam features. At the start of this month, the Britannic Money Restart homeloan, with the brand name Fresh, was unveiled, offering overpayments, underpayments, payment holidays, daily […]

Mid-year cuts by R&SA as NU reduces its MVR

Royal & Sun Alliance is slashing the bonuses of one million with-profits policyholders in mid-year with payouts on conventional with-profits reduced by 10 per cent and annual bonus rates on unitised with-profits cut by 1 per cent. But Norwich Union is reducing its MVR from 11 per cent to 7 per cent in response to […]

Rises slow down but a crash is ruled out

Property market analyst Hometrack is ruling out a 1990s-style housing crash, providing that bank base rate does not double to 8 per cent, but it warns that a smaller rise of 2 per cent could hurt borrowers. Its August survey shows price rises cooling off, with average growth of 0.7 per cent to £133,000 from […]

Future Mortgages wants Mig rethink

Specialist lender Future Mortgages is calling on the industry to review the use and application of mortgage indemnity guarantees, used by lenders as insurance against customers who default, because they do not offer any benefits to borrowersIt says with house prices nearly 20 per cent higher than this time last year there is a serious […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm