Regulations allowing private investors to invest in hedge funds have been expected for more than two years. At last the first draft of the proposed hedge fund regulations has been thrashed out by theFinancial Services Board (FSB), the Association of Collective Investments (formerly unit trusts) and the Alternative Investment Management Association (AIMA).
Carla Fiford, head of hedge funds at Worldwide Capital and an AIMA board member, says the first draft proposes that funds of hedge funds (FoHFs) will be marketed to the public provided that suchfunds have a minimum of five underlying funds with no more than a 25% exposure in any one of those.
