Regulation Retail Investors

‘Retailisation’ of hedge funds prompts review


The ‘retailisation’ of hedge funds has promoted the European Commission to order a review into the sector.

The European Securities and Markets Authority has started looking into the operation of such funds and the industry practice following the implementation of UCITS III in order to identify the possible impact on investor protection and market integrity, according to a 40-page discussion paper.

It states: “UCITS funds started to implement new strategies which are considered by some external stakeholders as innovative. It has often been suggested that by exploiting the new investment criteria and limits introduced by UCITS III, such funds