LONDON (Reuters) – The risks hedge funds pose to markets and confidence are no higher than in traditional asset management and overregulation could drive the industry away from Britain, an industrybody said on Thursday.
Britain is the most popular destination in Europe for hedge fund managers and Britain’s Financial Services Authority has acknowledged the importance of hedge funds to financial markets, particularly in providing liquidity.
The Alternative Investment Management Association (AIMA) said it welcomed the establishment of the FSA’s ‘centre of hedge fund expertise’ to oversee some of the large hedge funds.
