Loosehead, on a totally unrelated point:
Under the current guidelines that apply to derivatives, investment management companies are permitted to use derivatives purely for the purposes of management and hedging. The maximum permitted nominal is based on the fund�s total assets, rather than directly on the inherent risk of the derivatives. As such, derivatives are entirely limited to orderly fund administration and hedging. Leverage is possible only to a certain degree. KAGG, derivative financial instruments are permissible only under the following circumstances (special asset funds):
- securities, (hedging and income enhancement);
- equity indices, (hedging and income enhancement);
- interest rates, (hedging and income enhancement);
- foreign exchange, (only for hedging purposes);
- swaps, (only for hedging purposes).
If the government was planning to overhaul these laws, should it go to referendum?
And if so, are you confident that the British public would be in a position to make a sound judgement? Or would they just follow what The Sun says?