Business and Other Briefings

FSA: The Financial Services Authority (FSA) has published a paper which examines the recent growth in investment in commodity markets. The paper, Growth in Commodity Investment: risks and challenges posed for commodity market participants, concludes that markets have changed significantly bringing new issues which need to be understood and acted upon by participants.

Although direct investment by retail investors is limited at present, financial firms are responding to growing consumer interest by developing products which will allow individuals to gain an element of exposure to commodity markets.

These changes, combined with a shortage of financial services professionals who understand the market, could result in consumers buying products they don't fully understand. Indirect exposure of retail investors is also increasing through pension fund investment.
Press release ~ Growth in commodity investment: risks and challenges for commodity market participants ~ FSA

FSA: The Financial Services Authority (FSA) yesterday has set out proposals that would allow retail consumers to invest in funds of hedge funds and other alternative investments sold by firms authorised in the .

A key element in the FSA's approach is its expectation that the fund manager will operate with ‘due diligence’. This sets out FSA requirements in a more principles based way, and the FSA proposes guidance for the fund manager in the matters the FSA believes he needs to consider in making & maintaining, significant investments into unregulated schemes.

The FSA has also accompanied the Consultation Paper (closes 27 June 2007) with a case study illustrating the respective responsibilities of providers and distributors of these products, and would welcome comment upon that as well.
Press release ~ CP 07/6, Funds of Alternative Investment Funds ~ Discussion Paper 05/3 Wider Range of Retail Investment Products: Consumer Protection in a Rapidly Changing World

FSA: The Financial Services Authority has set out proposed changes to its ‘Permitted Links’ rules that govern which assets the £650 billion unit-linked insurance sector can invest in. The current Permitted Links rules have been in place for 13 years and they have not kept up to date with market changes since then.

The FSA will replace them with a more principles-based set of rules which will allow investment in a wider range of assets while maintaining current levels of consumer protection. To do this the FSA will put in place a set of high level rules for unit-linked insurance funds which will be underpinned by some more detail rules on specific assets. The consultation closes 28 June 2007.
Press release ~ Consultati on Paper 07/7 – Permitted Links for Long Term Insurance Business

HMRC: Revenue & Customs Brief 30/07

This Brief gives details of an article concerning the outcome of Halifax case.

HMRC: Revenue & Customs Brief 29/07

This Brief gives details of an article concerning : ESC 3 29 and change of use provisions

HMRC: Revenue & Customs Brief

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