Britain's financial regulator (FSA) is to ask London-based hedge fund managers for more information on their holdings and risk exposure, mirroring a plan recently put forward by the industry.

The Financial Services Authority said on Wednesday the information should be used to weigh the risks hedge funds and similar vehicles could pose to the financial system.

In the report by FSA chairman Lord Adair Turner, commissioned by Prime Minister Gordon Brown at the height of the banking meltdown last October, the FSA said regulators need the power to make rules in areas such as capital and liquidity if hedge funds' activities begin to mirror those of banks or they believe funds pose systemic risks.