Hedge funds jump barrier to retail market

FSA's approval of principles in recent internation consultation brings hedge funds within reach of retail investors

Hedge funds are a step closer to being sold in the retail market after the FSA approved a set of common principles for valuing the products. However, industry observers assert that hedge funds are already available to retail investors, though barriers remain. The nine principles, outlined in a consultation paper published by the International Organisation of Securities Commissions (Iosco), are designed to deal with conflicts of interest that can arise between a hedge fund manager and the fund itself. Such conflicts can occur because managers are often the most able to value the products ...