Hedgeline 13
WELCOME to HEDGELINE - a publication dedicated exclusively to hedge fund regulation, each month we will provide a summary of the major legal and regulatory developments in hedge fund regulation, both in Europe and key offshore jurisdictions. For those who want to read in more depth, we have also provided links to all relevant materials currently available.
In this month’s update:
- FSA investigation finds no evidence of market abuse in HBOS share raid
- Securities and Exchange Commission (SEC) curbs “naked” short selling
FSA INVESTIGATION FINDS NO EVIDENCE OF MARKET ABUSE IN HBOS SHARE RAID
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- False rumours may have contributed to share price collapse but other factors involved
- FSA warns its investigations into false rumours to continue at “high level of intensity”
- FSA will review firms’ compliance policies for dealing with rumours
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After a four-month investigation, the FSA has found no evidence of a “concerted attempt by individuals” to manipulate share prices in Halifax Bank of Scotland (HBOS) during the high-profile raid on its shares earlier this year. More
SECURITIES AND EXCHANGE COMMISSION (SEC) CURBS “NAKED” SHORT SELLING
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- Securities and Exchange Commission (SEC) imposes temporary ban on “naked” short selling in 19 designated stocks; says measure aims to stop rumour-mongering
- SEC chairman attacks “short and distort” tactics; warns of new rules against short sellers in broader market
- US Hedge Fund Association slams SEC move while top US law firm calls for more aggressive action against short sellers
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One month after the FSA introduced restrictions on short selling of shares in the UK, the US SEC, announced a temporary ban on so-called “naked” short selling, a practice that involves traders selling stocks short without borrowing the stock beforehand. More
ABOUT YOUR PUBLISHER, FSI:
FSI is a well known law firm with specialist expertise in relation to enquiries and investigations instigated by the FSA and overseas regulators, including AMF in France and the SEC in the US. Often working in conjunction with compliance specialists and other professional advisers, the team will attend interviews at the FSA, advise on all correspondence with the FSA and represent their clients before the Regulatory Decisions Committee and the Financial Services Markets Tribunal. For further information on how we might be able to help you, please contact head of team, Philip Rubens:
Philip Rubens is head of the financial services team at FSI. Having undertaken a secondment at the FSA, Philip is a leading expert in the regulatory enforcement field.
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