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IMA warns the FSA to hedge on retail fund offerings

The Investment Manage-ment Association is warning the FSA not to allow a wide range of hedge funds to be authorised for sale to retail investors.

In its response to the regulator&#39s discussion paper Hedge Funds and the FSA, the IMA says the balance of view among fund managers is that it would be premature for a host of hedge funds to be made readily available to retail investors.

It says there is unlikely to be enough demand to justify a wholesale liberalisation of the regime but wants the regulator to investigate allowing regulated onshore hedge funds for institutional investors as there is growing interest in this area.

Eventually, it believes demand among retail investors would grow once the institutional market for hedge funds takes off.

For this to happen, however, the IMA believes there needs to be a change in the existing tax regime.

Under current regulations, onshore hedge funds would be subject to annual capital gains tax and when investors sell their stake in funds, which the IMA fears would deter providers from coming onshore.

Director of regulation and tax Julie Patterson says: “The IMA believes it would be premature to allow a wide range of hedge funds to be authorised for sale to retail investors but there is increasing demand from institutional investors and private clients, to which the UK should respond.”


Axa PPP Healthcare – Cashback

Tuesday, 10 December 2002 Type: Healthcare cash plan Minimum premium: £4.81 level one, £9.62 level two, £14.43 level three Minimum-maximum ages: 18-60 Maximum benefit: Level one &#45 dental treatment £45, dental accident up to £10,000, optical benefit £35, physiotherapy, osteopathy, chiropractic, acupuncture and homeopathy £130, chiropody and podiatry £40, specialist consultation fees including diagnostic tests […]

&#39Depolarisation is set to take us back to the 80s&#39

The Consumers&#39 Association and Liberal Democrat trade and industry spokesman Vincent Cable are warning that the end of polarisation risks repeating the conditions that lead to widespread endowment misselling of the 1980s.The comments follow the record £1m fine slapped on Lloyds TSB for endowment misselling by Abbey Life between 1995 and 1999, which has led […]

&#39Regulation could finish small firms&#39

The Council of Mortgage Lenders says FSA mortgage regulation could drive out smaller intermediaries and lenders as bigger players club together to cope with higher compliance costs.At the CML annual conference in London last week, senior policy adviser Kate Main said she fears CP146 proposals mean smaller firms will be unable to compete and consumer […]

Mortgage advisers will have to pick one role

Mortgage advisers will be forced to choose between being an appointed representative of one firm selling its panel of products or be fully independent and directly authorised by the FSA from 2004, according to new proposals from the regulator.The FSA consultation paper, published this week, says ARs can only have one principal company for ordinary […]


Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.


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