Wed, Jun 1, 2016
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 - Scientist turned hedge fund founder cuts profitable Aussie short, Pelargos joins hedge funds’ bet on turnaround at Honda, Managers set to cash in on infrastructure debt upswing[more]

    Scientist turned hedge fund founder cuts profitable Aussie short From Bloomberg.com: AE Capital, a hedge fund run by a former atmospheric scientist, trimmed bets against the Australian dollar as it gauges shifts in the world’s two biggest economies. The Australian, Canadian and New Zeala

  2. He's lost £200m in a year - so has Britain's star hedge fund boss Crispin Odey lost his golden touch?[more]

    From Thisismoney.co.uk: ...Odey’s laid-back attitude gave no indication of the turmoil his flagship fund had put investors through. It had tumbled 20 per cent in May – a terrible performance given most of his rivals were in positive territory for the year. Odey’s fund had got into trouble after taki

  3. Comment - If you’re such a great investor, where’s your alpha?[more]

    From Mineweb.com: … They are few and far between. You likely know their names. There is a short list of those who have 1) outperformed; 2) over long periods of time, and; 3) manage substantial sums of money. It’s impressive if you are on that list, but discouraging if you seek to invest institutiona

  4. European fund managers 'dressing up’ track record to gloss on performance[more]

    Komfie Manalo, Opalesque Asia: A new study by global analytics firm Cerulli Associates has found that the problem of 'dressing up' track records by fund managers is getting worse. In its latest issue of The Cerulli Edge - Europe Edition,

  5. Why the equity short bias hedge fund underperformed in April[more]

    From Marketrealist.com: The Barclay Equity Short Bias Hedge Fund returned -0.83% in April 2016. However, on a year-to-date basis, the fund provided a return of 3.4% through April 30, 2016. The equity short bias strategy works best when the Market is in a downturn. From January 2016 to mid-Febr