Regulation in Italy needs to improve

There are now 46 hedge funds available in Italy, however most are run from outside the country, despite having Italian fund managers.

There are 41 fund of funds, the first of which was authorised in April 2001, and five single manger portfolios, the first of which was authorised in July 2002.

As of August 2002, the industry had already gathered a combined E2bn in assets, according to Massimo Capuano, chief executive of Borsa Italiana. Speaking at the Borsa's conference in Milan earlier this month