FAIFs
Advisers lacking specialist investment expertise should be “discouraged” from recommending funds of hedge funds and other alternative investments, despite the FSA unblocking access for retail clients.
The FSA has today unveiled a new regime allowing UK retail consumers to invest in funds of hedge funds and other alternative investments but has warned advisers they must understand the products before making a recommendation.
The education of advisers and their clients on the merits of hedge funds of funds is essential if their introduction into the retail market is to be a success, says alternative investment manager Bramdean Asset Management.
Other FAIFs articles
The Financial Services Authority is proposing to allow retail consumers access to retail funds of hedge funds, but appears to suggest they should only be distributed with financial advice.
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