Alternative Investment Management Association
27 March 2007
London, 27 March 2007: The Alternative Investment Management Association (AIMA), the leading global hedge fund and alternative investment industry association today welcomed details of the FSA’s proposals to allow UK retail investors wider access to alternative investments.
In its proposals, the FSA has laid out its thinking on how alternative investments and, in particular, funds of hedge funds can become available to retail customers.
AIMA views the proposals as a positive step forward as a number of its members has long argued that retail investors should be able to benefit from access to new opportunities for risk diversification and portfolio growth. AIMA also welcomes the operational safeguards that the FSA will require to be taken to ensure that investor protection is on a par with other authorised investments.
Commenting on the report, Matthew Jones, Manager Regulatory Department, said “There is a common goal shared by the industry and the FSA to optimise the investment environment for investors and we believe this is a positive step forward.
The FSA is right to conclude that retail investors should be given the opportunity to invest in market-leading investment products that can deliver absolute return performance in all markets, so giving a better opportunity for risk diversification.
However, as the FSA found with its QIS regime some time ago, the be all and end all for these products is the question of how they will be taxed and we are pleased to understand that the FSA is confident that an appropriate taxation regime will be developed by HM Treasury, in discussion with the FSA.”
A copy of the FSA’s proposal (Funds of Alternative Investment Funds – FAIFs) can be found at http://www.fsa.gov.uk/pubs/cp/cp07_06.pdf
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For further information, please contact Eoin Brophy, Hume Brophy Communications on +44 (0)20 7499 8736.
1. About AIMA
As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has over 1,100 corporate members worldwide, based in 46 countries.
Members include leading hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting services and fund administrators. They all benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators, worldwide.
AIMA is a dynamic organisation that reflects its membership’s interests and provides them with a vibrant global network.
AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website www.aima.org
2. Further information
Funds of hedge funds are already marketed to retail investors in other European countries including France, Germany, Ireland and Spain.