FSA outlines rules for Faifs

The FSA has published rules funds of alternative investment funds must abide by.

The regulator also published an extensive list of questions intermediaries must be able to answer before they can recommend the new retail product to their clients. The Investment Management Association welcomed the FSA's move, saying "it enables investors to gain access to a wider range of investments." The FSA will review the rules after implementation, and did not rule out re-writes of them once the EU's Alternative Investment Fund Management directive takes effect later this year. Under the proposed framework, Faif managers will be allowed to invest up to 100% of assets in fund...