In the June 5 edition of Corporate and Financial Weekly Digest, we reported the proposal by the UK Financial Services Authority (FSA) to extend its existing short selling disclosure regime which was due to expire on June 30. The FSA said its expectation was “that it would either be superseded in due course by broader permanent disclosure measures—preferably agreed on the widest possible international basis—and/or be revoked.”
On June 26, the FSA announced that it has extended, without an expiration date, the current disclosure regime. While no expiration date has been set, the FSA has emphasized that it does not intend to keep the regime permanently.
Short position disclosures remain required for net short positions in relevant issuers which exceed 0.25% of the issued share capital or the issuer. Further filings are required as the position increases by bands of 0.1% (i.e. the net short position reaches 0.35%, 0.45% etc).