AIMA protests on new FSA short-selling rules


The Alternative Investment Management Association (AIMA) has expressed its disappointment with the Financial Services Authority’s (FSA) new rules issued last Friday for reporting short positions in companies making rights issues – saying the measure was introduced without consulting the industry and that hedge funds would have no time to prepare.

The FSA announced the rules in a response to increased short-selling activity in recent rights issues and other capital-raisings. The proposals, which take effect today, appear to be in response to the recent spate of emergency recapitalizations in the U.K. banking sector – such as the rights issue for