Industry questions due dilligence requirements on Faifs

Largely positive reaction to latest stage in Faif development, although groups keen for stringent regulation to ensure common standards

The asset management industry has largely welcomed the FSA's long-awaited proposals to allow groups to set up Funds of Alternative Investment Funds (Faifs). Under the plans, existing Non-Ucits retail scheme (Nurs) rules would be tweaked to allow 100% investment in unregulated funds rather than the existing 20%. This would pave the way for a wave of onshore funds of hedge funds. Stewart Cazier, New Star's MD for retail business and development, said the group welcomes the plans but wants to see more concrete due diligence criteria than has been mooted. "I am one of those who went back ...