UK regulator set to clamp down on hedge funds

The Financial Services Authority, the British financial regulator, said on Monday that it will formally assess hedge funds after an initial survey found market abuse prevention in some funds to be poor.

"Some hedge fund managers had a high level of awareness and appropriate controls in place, but others were less aware, had fewer controls and demonstrated a complacent attitude to the risks," the authority said. "We are disappointed by some of what we saw."

The authority said it will visit mor