UK: the Financial Services Act 2010 - FSA implementation

The Financial Services Authority has published a consultation paper in which it sets out proposals concerning some of it new powers and duties under the Financial Services Act (2010): see here (pdf). The consultation paper focuses on short-selling rules, enforcement powers and the new financial stability information-gathering power.

With regard to short-selling, the FSA notes in the paper (para. 2.8):

We consider that the present scope of the disclosure obligations affecting net short positions held in UK financial sector companies remains appropriate. At this stage we do not want to extend the scope of the disclosure obligations before finalising a comprehensive regime at international level. Accordingly, we propose that holders of significant net short positions in UK banks, UK insurers and the UK-incorporated parent undertakings of UK banks and UK insurers, as defined in the Glossary to the FSA Handbook, should be required to disclose those positions".