Review is an about-turn in the UK Financial Services
Authoritys (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...