FSA to assess hedge fund controls

News Article - 29 October 2007
Category: Business

The Financial Services Authority (FSA) is to launch a formal assessment of hedge fund managers' systems after being "disappointed" with the current regulations.

The review aims to limit current market abuse such as trading on inside information. According to the FSA, employees of hedge fund firms should be fully trained on preventing such abuse and general good practice.

It says blame for market abuse and slack controls lies with senior management and not a company's compliance team and that it will be revisiting firms to assess their systems.

Quoted by Reuters, the FSA newsletter said: "Some hedge fund managers had a high level of awareness and appropriate controls in place, whilst others were less aware, had fewer controls and demonstrated a complacent attitude to the risks."

The FSA recently announced that nearly a quarter of all UK take-over deals in 2005 involved possible insider trading.

Article keywords: fsa, financial services authority, hedge fund

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