The Financial Services Authority may not have intended to do so, but its consultation on how hedge funds and other investment vehicles should be allowed to list in London has opened a much broader debate, likely to run well beyond tomorrow's official deadline for comments.

The FSA's regime is one reason for the success of London in attracting international listings. But the watchdog has to take seriously the fears of some UK-based fund managers that its light touch is in danger of becoming a soft touch.