Brazil recently authorised its sovereign-wealth fund to trade currency derivatives.

ECONOMIST: Latin America's economies: Waging the currency war | The

"Consumers will still need to 'look beneath the bonnet' and ask the provider or an authorised financial adviser questions such as what the fund is invested in and how risky the sector is, " said the FSA's consumer director Christine Farnish.

BBC: FSA expands ISA comparison table

Unregulated by the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority (FCA) or other relevant regulators, hedge funds are not subject to the limitations and restrictions imposed on their public fund brethren, such as retail mutual funds in the United States or authorised unit trusts in the United Kingdom.

FORBES: The Simple Truth about Hedge Funds