UK Financial Stock Short Selling Regime—Short Selling Disclosure Regime Extended

KEY POINTS

Disclosure

The Financial Services Authority (FSA) rules on disclosure were due to expire on June 30, 2009. However, the obligation to disclose a net short position in a UK financial sector company is to remain in place. For details of the current disclosure obligations, please see our January 26, 2009, alert, “UK Financial Stock Short Selling Regime—FSA Releases Policy Statement.”

The current disclosure regime will remain in place until it is “superseded in due course by broader permanent disclosure measures – preferably agreed on the widest possible international basis – and/or be revoked.” The FSA has emphasized that it does not intend to keep the regime permanently.

Note: As previously set out in the January alert, the prohibition on short selling of stocks in UK financial sector companies has ended.

Further information

The Policy Statement 09/1, “Temporary short selling measures,” can be found here: http://www.fsa.gov.uk/pubs/policy/ps09_01.pdf

The Policy Statement 09/10, “Extension of the short selling disclosure obligation,” can be found here: http://www.fsa.gov.uk/pubs/policy/ps09_10.pdf

The list of UK financial sector companies can be found here:
http://www.fsa.gov.uk/pubs/other/Shortselling_list.pdf 

CONTACT INFORMATION

If you have any questions regarding this alert, please contact-



Mark H. Barth

mbarth@akingump.com 212.872.1065 New York
David M. Billings dbillings@akingump.com 44.20.7012.9620 London
J.P. Bruynes jpbruynes@akingump.com 212.872.7457 New York
James A. Deeken jdeeken@akingump.com 214.969.4788 Dallas
Christopher M. Gorman-Evans cgorman-evans@akingump.com 44.20.7012.9656   London

Barry Y. Greenberg

bgreenberg@akingump.com 214.969.2707 Dallas
Robert M. Griffin Jr. bgriffin@akingump.com 44.20.7012.9676 London
Leon B. Hirth lhirth@akingump.com 212.872.1059 New York
Ira P. Kustin ikustin@akingump.com 212.872.1021 New York
Arina Lekhel alekhel@akingump.com 212.872.8018 New York
Burke A. McDavid bmcdavid@akingump.com 212.872.1083 New York
Prakash H. Mehta pmehta@akingump.com 202.887.4248 Washington, D.C.
Lisa A. Peterson lpeterson@akingump.com 817.886.5070 Dallas
Eliot D. Raffkind eraffkind@akingump.com 214.969.4667 Dallas
Sebastian Rice srice@akingump.com 44.20.7012.9618 London
Fadi G. Samman fsamman@akingump.com 202.887.4317 Washington, D.C.
William L. Sturman wsturman@akingump.com 212.872.1035 New York
Ann E. Tadajweski atadajweski@akingump.com 212.872.1087 New York
Simon Thomas swthomas@akingump.com 44.20.7012.9627 London
Stephen M. Vine svine@akingump.com 212.872.1030 New York