On November 14, the Financial Services Authority (FSA) issued an update on its proposals to allow UK retail consumers to invest in funds of hedge funds and other alternative investments sold by UK authorized firms.

The FSA had planned to issue a policy statement and final rules at the end of this year which would have allowed the development of a Funds of Alternative Investment Funds (FAIFs) vehicle for the retail market, as described in the March 30, 2007 edition of Corporate and Financial Weekly Digest.

There remain a number of tax issues that are currently being considered in conjunction with proposed changes to the UK’s offshore funds regime, as described in the October 19, 2007 edition of Corporate and Financial Weekly Digest, and the FSA now consider it appropriate to delay publication of its FAIF proposals until early 2008.