Hedge funds should not apply different terms to different clients, according to Stanley Fink, chief executive of Man Group, the world’s larg...

Hedge funds should not apply different terms to different clients, according to Stanley Fink, chief executive of Man Group, the world’s largest listed hedge fund group.

Speaking at a fund management conference in London, Mr Fink was quoted by Bloomberg as saying: "If you want to have different terms for some clients, you really need different accounts.

"We do not make extensive use of side letters. Their enforceability is questionable," he said, referring to the practice of sending side letters that can provide certain investors with more desirable terms than others on matters such as performance fees.

In so doing, Mr Fink has endorsed the recent efforts by the UK’s financial regulator, the Financial Services Authority, to stop the industry giving preferential treatment to favoured investors in funds.

Retail investors are becoming increasingly exposed to hedge funds and the FSA said last week it was considering whether retail investors should be allowed to put money directly into funds of hedge funds.

In the same speech, Mr Fink said Man Group supported "good careful regulation," referring to the move by the Securities and Exchange Commission to require many managers based in the US and overseas to register with it by February, and its plan to inspect their businesses.