IFSA gives approval to new short-selling regulations
|
|
New draft regulations relating to the disclosure of short-selling information has the approval of the Investment and Financial Services Association (IFSA), which said it represents a “sensible and workable” outcome.
The new regulations announced by the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, complete the Government’s regulatory regime covering the practice of short-selling, which also includes the banning of naked short-selling and provides the Australian Securities and Investments Commission (ASIC) with more power in relation to short-selling activity.
Under the draft regulations, covered short-selling transactions will be required to be reported to market operators and will be publically released the following day. Short-sellers will also need to report short positions to ASIC, which will in turn release the information to the public four days after the positions are taken.
“The regulations strike the right balance between the market’s interest in knowing what short-selling is occurring and the legitimate interests of businesses in not having their trading strategies compromised,” Bowen said.
IFSA chief John Brogden said the regime will “provide meaningful information to the market while reducing the risk of commercially sensitive information being disclosed”.
Brogden said IFSA will work with ASIC to develop an appropriate threshold under which short-selling positions will not be required to be reported.
The Government will review the regulatory arrangements after 12 months.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
