Category — International Solutions and Foreign Direct Investment

The Securities and Exchange Commission (SEC) and the United Kingdom’s Financial Services Authority (FSA) have posted answers to a series of frequently asked questions on their websites in order to clarify the new disclosure requirements under the SEC’s amended Emergency Order of 21 September and the FSA’s Short Selling (No 3) Instrument 2008 of 23 September.

See a Client Alert on the FSA document here.

These FAQ, while not constituting official statements by either agency, provide important clarification regarding the scope, definitions and commenting procedures.

The SEC’s FAQ can be accessed here and the FSA’s here.

The United Kingdom Financial Services Authority (FSA) has released on 23 September 2008, a new Short Selling (No 3) Instrument 2008 and revised FAQs. The Instrument makes a few minor changes to the provisions as previously published. The revised FAQs include some new questions and answers and revise certain of the answers previously given.

Key Points From the Revised FAQs

The revised FAQs clarify that the prohibition on short sales and the disclosure requirements apply to both covered and uncovered/naked short positions.

The prohibition and disclosure requirements do not apply to—

• the issuance of convertible bonds
• credit default swaps (CDSs)
• stock lending activities.

See the full alert here.

For specific advice in relation to your own disclosure obligations under this new regime or if you otherwise have questions regarding this alert, please contact—

• Sebastian Rice, 44.20.7012.9618, London
• Simon Thomas, 44.20.7012.9627, London