UK FSA increases hedge fund scrutiny

Author: Nicholas Pettifer | Published: 18 Mar 2009

Today’s Turner Review is an about-turn in the UK Financial Services Authority’s (FSA) policy on hedge fund regulation.

Lord Adair Turner, chairman of the FSA, has said that hedge funds must not become “shadow banks”. They need to be monitored carefully for their influence on banking stability and the regulator should have power to act if the market is threatened. In the short to medium term, this means the FSA will require more...