Hedgeline
WELCOME to HEDGELINE - a publication dedicated exclusively to hedge fund regulation, each month we will provide a summary of the major legal and regulatory developments in hedge fund regulation, both in Europe and key offshore jurisdictions. For those who want to read in more depth, we have also provided links to all relevant materials currently available.
In this month’s update:
- FSA to give retail investors greater access to hedge funds
- Jersey launches new hedge fund regime
- Liquidators of Cayman Bear Stearns funds ejected by investors
FSA TO GIVE RETAIL INVESTORS GREATER ACCESS TO HEDGE FUNDS
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- New category of regulated fund to be launched - Funds of Alternative Investment Funds (FAIFs)
- Retail investors to get access to hedge funds with benefit of FSA regulatory protection
- Due diligence rules for FAIFs to be strengthened
- New tax treatment agreed by treasury for FAIFs
- Final rules published by September 2008; Implementation early 2009
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U.K. Financial Services Authority (FSA) proposals, that will give retail investors greater access to hedge funds, have been confirmed by the FSA but will be subject to further consultation before implementation. More
JERSEY LAUNCHES NEW HEDGE FUND REGIME AS FUNDS INDUSTRY BOOMS
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- New hedge fund regime aims to make Jersey top hedge fund location in Europe
- New regime will not be regulated by Jersey Financial Services Commission
- No audit requirements
- Jersey funds industry enjoyed boom in 2007
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Jersey’s new regime for hedge funds and private equity funds - the Unregulated Funds Regime - is now in force. Launching the regime last month, Jersey Finance Technical Director Robert Kirkby said the new rules would make Jersey “a much more attractive prospect” for hedge fund managers who want to set up funds “in short timescales with no local minimum regulatory input.” More
LIQUIDATORS OF BEAR STEARNS' FUNDS EJECTED BY INVESTORS
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- Bear Stearns investors replace liquidators of Cayman funds
- Investors aiming to wrest control of failed funds
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Investors in two Cayman-based Bear Stearns hedge funds have succeeded in their bid to replace liquidators KPMG with liquidators of their own choice, according to the Financial Times.
More
Telephone interviews introduced by the FSA
The FSA's enforcement division has recently changed its tact on market abuse cases and is now conducting telephone interviews with potential suspects without prior warning. The interviewee is asked whether he wishes to proceed with the interview and if so is formally cautioned at the commencement of the interview.
We are experienced in advising clients on how to conduct telephone interviews with regulators. We recommend that the interviewee asks the FSA at the outset for a short adjournment in order to take legal advice. We believe that the regulator will be willing to grant such an adjournment and no adverse inference will be made by the granting of such an adjournment.
ABOUT YOUR PUBLISHER, FSI:
FSI is a well known law firm with specialist expertise in relation to enquiries and investigations instigated by the FSA and overseas regulators, including AMF in France and the SEC in the US. Often working in conjunction with compliance specialists and other professional advisers, the team will attend interviews at the FSA, advise on all correspondence with the FSA and represent their clients before the Regulatory Decisions Committee and the Financial Services Markets Tribunal. For further information on how we might be able to help you, please contact head of team, Philip Rubens:
Philip Rubens is head of the financial services team at FSI. Having undertaken a secondment at the FSA, Philip is a leading expert in the regulatory enforcement field.
MISSED AN EDITION?
Want to catch up on a previous edition of Hedgeline? Click on the links below
Hedgeline August
Hedgeline September
Hedgeline October
Hedgeline November
Hedgeline December
Hedgeline January
Hedgeline February