Immediate FSA amendment to short-selling disclosures for financials

The FSA has just completed a review of its short selling measures in respect of financial sector stocks. The current temporary prohibition on increasing short positions remains in place; however, the FSA has decided to change the requirements for the daily disclosures of existing short positions.

The FSA  has made amendments to the Code of Market Conduct so that once the initial disclosure of a short position has been made, additional disclosures will only be required each time that short position changes. When a disclosable short position changes, including where the firm fully closes out the position, the firm must make a disclosure on a Regulatory Information Service by 3:30pm on the following business day.

These amendments come into effect immediately.  Therefore, no disclosure is required on 31 October if an existing disclosed position has not changed since the last disclosure.

The FSA will publish its Consultation Paper on short selling in January.

For further details see FSA press release www.fsa.gov.uk/pages/Library/Policy/Handbook/short-selling.shtml

If you would like to discuss further how we can assist please contact Scott Wilson, Stephen Burke, Chris Rexworthy, Peter Moore or your usual IMS Consultant.

31 October 2008