Gov't warns on short-selling mimics
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The Federal Government has issued a warning to financial services companies seeking to implement products or strategies that mimic short-selling.
The Minister for Superannuation and Corporate Law Senator Nick Sherry has used an address to the Australian Securities and Investments Commission (ASIC) summer school to state the Government’s awareness of the products.
“I would like to take this opportunity to note that we are very aware of a range of short selling-like instruments that some participants are seeking to employ to have the effect of a traditional short sale,” he said.
“I would counsel those involved that both the Government and ASIC are watching these developments closely,” Sherry said.
The minister also flagged to the summer school that the Government would shortly be releasing the detailed regulations flowing from the Corporations Amendment (Short Selling) Act 2008, passed by the Parliament last year.
In doing so, he said that there would be hard decisions to be made on the time of reporting and net versus gross.
AUTHOR
Mike Taylor
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