The FSA have published an update on its proposals to allow UK retail consumers to invest in funds of hedge funds and other alternative investments sold by firms authorised in the UK. The FSA was going to issue a Policy Statement and final rules towards the end of this year to allow the development of Funds of Alternative Investment Funds (FAIFs), including funds of hedge funds, within the retail market.
However, the FSA is aware that there are a number of taxation issues involved in the operation of such a scheme. HM Treasury is currently considering these issues in conjunction with the offshore funds regime on which a discussion paper was issued in October, with a deadline of 9 January 2008 for responses. The FSA has therefore decided to delay the publication of its proposals until the situation is clearer, which is likely to be in early 2008.
View FSA update on funds of alternative investment funds, 14 November 2007