FSA looks into hedge fund risks

The report, which identifies the key risks posed by hedge funds, raises the prospect of enhanced supervisory oversight of those 'high impact' funds domiciled in the UK.

"We view hedge funds as a significant, useful and growing asset class through their role in providing market liquidity and diversification options for investors," says Hector Sants, managing director, wholesale markets and institutions, at the FSA in London. "However, the activities of hedge funds do pose risks to the UK's fin

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