On October 1, the UK Financial Services Authority (FSA) published FS09/04, a feedback statement to DP09/01, its February 2009 discussion paper (see the February 13 edition of Corporate and Financial Weekly Digest). In FS09/04, the FSA sets out its policy approach to short selling and addresses the responses to DP09/01 and market developments since its publication.
The FSA does not intend its current disclosure regime (disclosure of net short positions of 0.25% or more of the issued share capital of UK financial services companies or companies carrying out a rights issue) to apply permanently and intends at a future date to replace it with a permanent regime, which will apply to short positions in all UK issuers.
Since DP09/01 was published, the Committee of European Securities Regulators (CESR) has issued proposals for a short selling disclosure regime. CESR proposals include public disclosures of significant short positions at the level of 0.5% and private disclosures to regulators at the lower level of 0.1% (see the July 10 edition of Corporate and Financial Weekly Digest).
To read FS09/04, click here.