You are here: Home - Saving & Banking - News -

Rules banning UK hedges trimmed by FSA

0
Written by:
28/03/2007

Plans to make it easier for people in the UK to invest in hedge funds have been announced by the Financial Services Authority (FSA).

The FSA is consulting on a proposal to allow investors to make a UK investment directly into ‘funds of hedge funds’ based in the country.

UK investors are currently only permitted to place money into foreign hedge funds, or buy shares in hedge funds management firms listed on the London stock market.

But the FSA’s mood has changed on the vehicles. “Hedge funds are not necessarily more dangerous than other investments and can help investors to spread their risk,” said Dan Waters of the FSA.

“What we are proposing to do is to lift a ban we have at the moment on ‘funds of hedge funds’ being located or authorised here in the UK.”

The FSA now thinks that hedge funds are such a usual part of the international investment arena that UK investment into them should be allowed.

So why were hedge funds treated with such caution in the first place? “Basically, because they are very risky investments that are difficult for the average person to understand,” said City analyst Colin Perry.

“They take a variety of ‘positions’ on movements, up or down, in the market and some have crashed spectacularly in the past. What the Government didn’t want to see, for obvious reasons, were thousands of investors losing their shirts just because they made a saving and investment into them.”

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Nationwide launches 25-year fixed rate mortgage

Nationwide Building Society has launched a 25-year fixed rate mortgage at 5.49%, which it is offering borrowers at a time...

Close