News
IR Society calls for clarity on market abuse - not just short selling.
Markets need consistent approach to transparency and policing.
The Investor Relations Society reacted to the FSA's recent announcement on rights issues disclosures at its annual meeting last night. Chairman, Peregrine Riviere, demanded more action over market abuse:
"The FSA's recent action on rights issues disclosures shows they can act quickly when there are heightened risks of market abuse: but in so doing, they have created uncertainty as to the future direction of their disclosure regime. It is also inconsistent with their feet dragging over CFD disclosure, which has a much wider day-to-day impact."
Riviere continued:
"I think all issuers would welcome more clarity on market manipulation, which is becoming ever more rife in these volatile and uncertain markets. We shouldn't throw up our hands in horror at short selling - companies seldom complain when manipulation sends their share price up. But we can demand more action over the market abuse that occasionally goes hand-in-hand with short selling."
"Our markets are crying out for transparency and the thorough policing of suspicious trading: issuers need the FSA to take a firm and clear stance."
Contacts: 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 June, 2008