Fri, Mar 27, 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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner