FSA targets shorting abuse in rights issues

clock

The FSA has introduced a new code of conduct to crack down on market abuse through short selling in companies undertaking rights issues.

In response to the recent severe volatility in shares of companies conducting cash calls, from Friday next week the regulator will enforce disclosure of significant short positions in stocks. It says a “significant short position” is defined as 0.25% of the issued shares achieved via short selling or by any instruments leading to an equivalent economic interest. The FSA says participants exceeding the threshold will be the obligated to disclose positions to the Regulatory Information Service by 3.30pm the following business day. Lender HBOS has come under sever pressure in recent da...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Quilter pledges £3m towards financial education

Feel Good Friday: Quilter pledges £3m towards financial education

Alongside £1m in grants supporting charities

Professional Adviser
clock 13 February 2026 • 1 min read
Brits unlikely to see IFAs despite Budget impact

Brits unlikely to see IFAs despite Budget impact

Just 19% were likely to seek advice, Continuum finds

Isabel Baxter
clock 12 February 2026 • 3 min read
Treasury consults on AR regime adding further FCA and FOS permissions

Treasury consults on AR regime adding further FCA and FOS permissions

Amid concerns about consumer harm and weaknesses in oversight

Isabel Baxter
clock 12 February 2026 • 3 min read