The Financial Services Authority has set out guidance for hedge fund managers on controls against market abuse after visits to some managers uncovered complacency towards risks.

In its Marketwatch newsletter, published today, the FSA said: "We had expected the level of market abuse controls in place would vary, which was indeed the case. Some hedge fund managers had a high level of awareness and appropriate controls in place, others were less aware, had fewer controls and demonstrated a complacent attitude to the risks. We are disappointed by some of what we saw."