News
Investor Relations Society welcomes FSA ban on short selling
The Investor Relations Society (IR Society) welcomes the announcement by the Financial Services Authority (FSA) of new rules to ban short selling of financial stocks.
Chairman of the IR Society Peregrine Riviere said "Desperate times call for radical measures. Short selling is a legitimate strategy and provides important liquidity to markets, but it cannot be used in conjunction with speculation to undermine counterparty confidence and bring down financial institutions, putting financial stability, jobs and welfare at risk for thousands of people. We applaud the FSA's bold move".
It is important that the FSA continues to monitor the situation closely and acts swiftly to extend the rules to other sectors if required. The Society will study the outcome of the FSA's comprehensive review of short selling in January and will consider if continued restrictions may be desirable to ensure the effective operation of the market.
For further information contact:
The Investor Relations Society
Peregrine Riviere - Chairman 07909 907 193
Michael Mitchell - General Manager 020 7379 1763
Notes for editors:
The Investor Relations Society represents members working for public companies to develop effective two way communication with the markets and create a level playing field for all investors. It has over 600 members drawn both from the UK and overseas, including the majority of the FTSE 100 and much of the FTSE 250.
Published: 19 September, 2008