Hedgeco.net – The Alternative Investment Management Association (AIMA), the leading global hedge fund and alternative investment industry association has welcomed the Financial Services Authority’s (FSA) proposal to allow authorised onshore Funds of Alternative Investment Funds (FAIF’s).

AIMA strongly believes that retail investors should be in a position to take advantage of the opportunities afforded by alternative investments – provided investor protection provisions are adequate.

AIMA also believes that the FSA’s high-level approach – concentrating on appropriate due diligence by the FAIF manager as the most effective form of consumer protection – is the correct and sensible one.

Matthew Jones, Manager in AIMA’s Regulation Department, said: “It is important to remember that the FAIF concept will not take off unless and until the underlying tax regime is resolved appropriately.

We feel that the FSA understands this and is working with HMT on this issue. AIMA supports the FSA’s work and will continue to do so as the post-consultation process proceeds.”