Trio of reforms including review of short-selling rules welcomed by industry
A parallel consultation will also now open the possibility of scaling back short selling rules so that they no longer apply to sovereign debt and CDS.
This includes a change to short-selling rules to protect the confidentiality of investment managers' positions, dealing with the clash between UK and US rules on payment for research and a rethink of securitisation rules to make them more flexible and help reboot the market.
Following the HM Treasury's review of short-selling rules in December 2022, the government has said it will:
MFA calls on FCA to improve UK securitisation regulation
Having been a vocal player in the debate, the Alternative Investment Management Association (AIMA) has welcomed this news.
The association has highlighted the way in which public transparency of short positions disincentivises firms from taking those positions — which it said can harm returns and market functioning — and the «disproportionate» cost associated with reporting short positions to the FCA.
A parallel consultation will also now open the possibility of scaling back short selling rules so that they no longer apply to sovereign debt and CDS.
Meanwhile, Hunt has also addressed the «clash» between US and UK/EU rules on payment for research.
The need for regulatory action was amplified when the US Securities and Exchange Commission confirmed last year that it would «let lapse its no action relief that enabled firms subject to MiFID to pay for research on an unbundled, ‘hard dollar' basis without this triggering the requirement for their research counterparties to register as investment advisers».
The chancellor said: «We welcome the FCA's commitment to start immediate engagement with the market to inform any rule changes on
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