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November 15, 2005
Hedge funds outraged at 50-pound breakfast
The trillion dollar hedge fund industry was aghast on Monday at having to fork out 50 pounds a head for a buffet breakfast briefing on how to do their job correctly with the Financial Services Authority.
"It's outrageous," said one hedge fund manager who declined to be named.
"We are paying the FSA 50,000 pounds a year to be able to trade and they are now asking for 50 pounds more so we can hear how they are going to regulate us," he said.
The audience with Andrew Shrimpton, the head of the FSA's new hedge fund supervisory unit, is in early December and the regulator said it will give hedge fund managers a chance to talk over industry issues.
But the multi-millionaire traders shouldn't come hungry.
"It tends to be croissants, pastries and coffee. It's a buffet breakfast not a slap-up eggs and bacon affair," an FSA spokesman said.
He said a fee was always charged for such industry events and the regulator did get "the odd complaint" about the cost.
Hedge funds managers, which include some of the highest earners in the financial sector, said a charge was justified in cases where the FSA offers training, but 50 pounds for a breakfast was wrong.
Europe's most powerful markets enforcer warned in the invitation that 'bookings will not be accepted without payment' and 'early booking is advised.' A tea cup is pictured on the invitation.
Earlier this week, the FSA said it was working to ensure that the "very high rewards" paid to hedge fund managers do not encourage bad market conduct.
Some hedge funds now fear the 50 pound breakfast charge could be the regulator's opening salvo.
The once-secretive hedge funds have come under the scrutiny of regulators worldwide as the industry expands and begins to attract investors beyond the wealthy and institutions.
-Reuters-
Posted by su at November 15, 2005 10:57 AM