FSA is consulting on changes to its handbook to reflect the SSR that takes effect from 1 November 2012. FSA proposes to make several changes to chapter 2 of the Financial Stability and Market Confidence Sourcebook (FINMAR) to:
- delete most of FINMAR 2, which contains disclosure requirements for the UK’s domestic short selling regime;
- include how it will use its temporary suspension powers under the SSR;
- set out details of how euros will be converted to sterling for the purposes of the regime; and
- explain the procedure for reviews of decisions by the FSA to prohibit persons from using the market-maker and authorised primary dealer exemption.
It will also amend the Decision Procedure and Penalties Manual (DEPP) to:
- note that the existing interview policy covers the SSR; and
- apply the existing penalties policy contained in DEPP 6 to the SSR.
Finally, it proposes to amend the Supervision Manual (SUP) to provide that a firm must allow access to FSA representatives to its business premises to enable FSA to meet its obligations under the SSR.
Consultation closes on 20 September so FSA can meet the EU deadline. (Source: FSA Consults on Short Selling Changes)