FSA throws out 'light' hedge fund regime
Regulator scraps light-touch regulation for hedge funds after shareholder lobbying
The Financial Services
Authority threw out its ‘light-touch’ regulatory regime for hedge
funds yesterday, as it bowed to fierce lobbying from shareholders, consumer
groups and investment trusts.
The changes are expected to bolster the current position by including certain
mandatory requirements that are lacking, such as the appointment of a board.
Investment bankers and lawyers expressed concern that the change could see
several hedge funds abandon London in favour of Amsterdam.