RegulationAccounting StandardsInvestor confusion over FSA shorting rules

Investor confusion over FSA shorting rules

Investors are confused by FSA rule changes which force hedge funds to disclose short positions in companies holding right issues

Almost half of the disclosures by hedge funds since the
Financial Services
Authority
(FSA) introduced changes to the rules, which forced them to
disclose short positions in companies holding rights issues, have contained
errors as the funds struggle to get to grips with complex calculations.

According to analysis by the Financial Times, 20 of the 41
disclosures so far have missed filing deadlines, contained the wrong
calculations or not been required.

The mistakes started with the first filing, put in a day before it was
needed, which declared a short position in a company not doing a rights issue.
Elgin Capital, the London hedge fund manager, later withdrew the notice, saying
it was issued in error.

Other mistakes included missing the 3.30pm deadline. Filings ranging from
four days late – by Bridger Management, short
Bradford &
Bingley
– to four minutes in the case of Cheuvreux, whose clients are short
0.283% of Crédit
Agricole
.

Further reading:

Read
the Financial Times story

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

2w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

5m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter