U.K. regulator the Financial Services Authority is drafting a reply to a tax discussion paper, which officials say threatens the development of FSA-authorized 'onshore hedge funds' (DW, 9/13). The Inland Revenue, the U.K. tax authority, issued the paper discussing the tax regime for investment funds following a regulatory shakeup of the industry by the FSA in April.
Will Davis, in the collective investment schemes and product regulation department, confirmed the FSA was drafting a response to the Revenue, but declined further comment.
The FSA said in a consultation paper in May 2003 it had worked with the Revenue over the proposed changes to authorized funds. Market officials said it is unusual for the FSA to be drafting a response to the Revenue given the two bodies were understood to have talked about the plans.
