WEST PALM BEACH, FL (www.hedgeco.net) -The U.K. Financial Services Authority has confirmed that it is studying hedge funds; however the watchdog agency denied reports that it has mounted awide-reaching investigation into the activities of hedge funds as reported by some independent news agency. The FSA spokesperson confirmed it is studying issues relating to the working of hedge fundsin the United Kingdom.

The spokesperson said, �We will be publishing a discussion paper in June,” but did not provide additional details as to the degree and magnitude of the study. The FSA had in some earlier statements raised issues with possible oversight of the UK based hedge funds. No decisions have been officially disclosed whether the agency will go forward with such plans or not.

Earlier reports about the FSA hedge fund probe said such investigation was prompted by FSA concerns about some trading practices of hedge funds, which could lead to financial instability. Since the SEC introduced the US hedge fund laws, many analysts fear that such trend may be copied by other regulators. Recently an official with the German regulator said that a global approach in regulating hedge funds may be more desirable.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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