Last week Frank Field MP supported the introduction of Bill Cash's Protection of Shareholders Bill. Today, Mr Field is introducing his own Private Members' Bill, the purpose of which is to ban the short selling of shares and to require disclosure by pension funds and their trustees of shares loaned for the purpose of short selling and the fees received in this regard. A copy of the Bill is available here. Notes:
[a] Whilst the ban on short selling of financial stocks has been lifted in the UK (see here), it has continued elsewhere. For example, in Australia, ASIC announced earlier this month that its ban would continue until 31 May 2009.
[b] The International Corporate Governance Network has published a code of best practice in respect of stock lending. This views as desirable the lending of shares but provides that the returns from lending should be separately disclosed from other investment returns when reporting to clients or beneficiaries.
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