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UK's FSA Likely To Rule Against Retail Hedge Fund Sales

by Philip Morton, Investors Offshore.com

26 March 2003

Experts in the United Kingdom have suggested that the Financial Services Authority (FSA) is unlikely to allow hedge funds to market to retail investors in the near future.

A review of the high-risk investment sector is expected to be published this week. However, difficulties in defining and effectively regulating hedge funds are likely to mean that they will remain unavailable to the average UK investor for some time to come.

However, reports in the national media have suggested that the FSA is likely to allow the current rules on the operation of the funds and the regulation of their managers to continue, despite concerns that the investment vehicles should face more stringent scrutiny.

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