Sun, Aug 2, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner