Category Archives: FSA

FSA Publishes Rules Expanding Power to Gather Information

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On July 23, 2010, the FSA published a consultation paper which incorporates the final text of the new Financial Stability and Market Confidence Sourcebook.

FINMAR 1 contains rules on the FSA’s information gathering powers, which have been revised and expanded to, among other things, include the power to require disclosure of information and documents by certain persons whose activities the FSA views as relevant to the stability of one or more aspects of the financial system.

The new FINMAR sourebook comes into force on August 6, 2010.

FSA Publishes Revised UK Rules on Short Selling

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On July 23, 2010, the FSA published a consultation paper which incorporates the final text of the new Financial Stability and Market Confidence Sourcebook.

FINMAR 2 contains rules on short selling, which incorporate to a large extent the existing FSA short-selling disclosure regime (currently set out in the FSA Code of Market Conduct (“MAR”)), but also add new short-selling powers and penalties granted to the FSA by the UK’s outgoing Labour government under the Financial Services Act 2010 (the “FS Act”, which came into force on April 8, 2010).

Among other things, the FS Act provides that the FSA has the power to:

  1. Require a person to provide information and documents that the FSA reasonably requires for the purpose of determining whether a person, or a person connected to them, has contravened any provision of short-selling rules; and/or
  2. Impose a financial penalty or public censure on a person that contravenes any provision of short-selling rules or on a person who was knowingly concerned in the contravention.

The new FINMAR sourcebook will come into force on August 6, 2010, which is also the date on which the revised and recast rules will come into effect and the existing short-selling rules in MAR will be deleted.