On March 27, the Financial Services Authority (FSA)published for consultation its proposals for alternative investment vehicles, including funds of hedge funds, which can be marketed to UK retail investors.

The FSA believes that the introduction of retail-oriented Funds of Alternative Investment Funds is appropriate as retail investors have been able to gain exposure to hedge funds and other alternative products via vehicles such as structured products. The FSA proposes to introduce substantial structural and operational safeguards including requirements to have an independent depositary, independent valuations and timely redemption of investments.

The consultation closes on June 27.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/040.shtml