Hedge funds for the masses could soon become a reality in Europe as asset managers slash their minimum investment levels and regulators lean towards a softer stance.

Regulators in Ireland, Italy, Luxembourg and Germany are set to follow the lead of less-developed jurisdictions, such as Singapore, by allowing retail investors access to hedge fund products for the first time. One analyst said: "It is undoubtedly the way the market is heading. While the UK's Financial Services Authority maintains there is no great demand from retail investors, the situation in continental Europe is a little different. They don't have the luxury of a developed institutional investor base and so drumming up retail interest is an obvious strategy."