On July 2, the UK Financial Services Authority (FSA) announced its decision to implement a general disclosure regime for long Contract for Difference (CFD) positions. This announcement follows the FSA’s CFD Consultation Paper (CP07/20) which closed for comments last February, as reported in the November 16, 2007 edition of Corporate and Weekly Financial Digest. The FSA believes that a general disclosure regime is the most effective way of addressing concerns in relation to market failures linked to voting rights and corporate influence.

Under the new regime, any existing share and CFD holdings in the same company over and above 3% must be aggregated for disclosure purposes. The disclosure threshold is in line with the FSA’s existing disclosure rules.

Final rules are expected to be implemented by February 2009.

www.fsa.gov.uk/pubs/cp/cp07_20_update.pdf