ASIC refines short selling rules
The Australian Securities and Investments Commission (ASIC) has clarified and standardised the regulatory framework around short selling.
The clarified position follows an industry consultation process begun in August last year and will mean that short sellers will no longer be able to net-off long and short positions where those positions are held in difference capacities.
The regulator explained the change by saying a fund manager who had 4,000 shares in a particular company in one fund and was short 1,000 shares in the same company with respect to another fund could not net-off those positions and must, therefore, report to ASIC the short position of 1,000 shares.
ASIC said the clarified arrangements would standardise the reporting of all short positions and ensure markets had a more accurate representation of overall short positions.
It said the new arrangements would start from next Monday.
AUTHOR
Mike Taylor
Recommended for you
The director of Ascent Investment and Coaching, Michael Dunjey, has been charged with 33 criminal offences.
Adviser Ratings’ latest financial landscape report finds there is a demographic of advice practices achieving an average revenue of $5 million, with only 3 per cent of practices overall seeing a revenue decline.
The FAAA is calling for regulators to take a partnership approach with financial advisers regarding incoming legislation, rather than treating the industry as “guinea pigs”.
There have been strong numbers of returning advisers this year so far, according to Wealth Data, already surpassing the same period for 2024.
