Thu, Jan 19, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Consequences on short-selling following UK FSA’s final rules in FINMAR book – Kinetic Partners

Friday, August 27, 2010
Opalesque Industry Update - Further to the FSA’s recent Handbook Release 104, the FSA has published the final rules into the Financial Stability and Market Confidence Sourcebook (FINMAR). These provisions relate to financial stability, market confidence and short selling.

We remind firms that as a consequence of the establishment of FINMAR, the short selling provisions, previously in Market Conduct (MAR) 1.9.2A to 1.9.2D, have been moved to FINMAR 2. No further changes were made to the short selling provisions. Firms should update their compliance manuals to ensure the references to MAR 1.9.2A to 1.9.3 are replaced with their FINMAR equivalent. The relevant section in the Kinetic Partners’ template manual, can be found under the heading ‘Financial Crime’.

Set out below is the revised wording that should replace the existing section. Please copy the text below and paste it to replace your current wording.

‘Disclosure of Significant Short Positions

During Rights Issues

FINMAR 2.2.1 requires Firms to disclose a Disclosable Short Position the Firm holds in shares during the period of a Rights Issue.

A Disclosable Short Position is defined as being a short position, which at midnight first represents an economic interest of one quarter of one percent (0,25%) of the issued capital of that Issuer within a Rights Issue Period.

A Rights Issue Period is defined as the period that commences on the date an Issuer announces a Rights Issue and which ends on the date the Shares issued under the Rights Issue are admitted to trading on a Prescribed Market.

UK Financial Sector Companies

FINMAR 2.2.3 requires Firms to disclose a Disclosable Short Position the Firm holds in shares in a UK Financial Sector Company.

A Disclosable Short Position is defined as being a short position which reaches, exceeds or falls below a disclosable short position of 0.25%, 0.35%, 0.45% and 0.55% of the issued share capital of the company and each 0.1% threshold thereafter.

Disclosure

Disclosure must be made to the relevant Regulatory Investment Service (“RIS”). Details of which can be found at: www.fsa.gov.uk/Pages/doing/ukla/ris/contact/index.shtml.

Disclosure must be submitted to the RIS by no later than 3:30pm on the Business Day following the date on which the Disclosable Short Position is reached or exceeded.’

A link to the relevant section of the FSA Handbook is set out below: Source


(Emailed update)


Kinetic Partners LLP is a global professional services firm providing a range of audit & assurance, tax, consulting, forensic & corporate recovery services to the asset management industry. Kinetic Partners operates out of offices in London, Dublin, Grand Cayman, New York and Geneva. 2009/10 winner of HFM Week’s “Best regulatory advisory firm” in UK & US. www.kinetic-partners.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised