Proposed reforms will attract investment and strengthen UK competitiveness
Washington, D.C. — MFA supported the Financial Conduct Authority’s (FCA) proposed reforms to the UK short selling regime in a comment letter today. The thoughtful, market-focused framework will strengthen the UK’s competitiveness and attract more investment in its equity markets.
“Short selling reform is essential to encouraging investment in UK equity markets. It helps correct mispriced assets, bolster liquidity, and root out corporate waste, fraud, and abuse,” said Jillien Flores, MFA Chief Advocacy Officer. “MFA commends the FCA for reforms that will attract investment in UK equity markets, support economic growth, and strengthen the UK’s position as a global financial centre. This approach should serve as inspiration for similar enhancements to the EU’s Short Selling Regulation.”
Key elements of the FCA’s modernised Short Selling Sourcebook that MFA particularly supports include:
-
Implementing aggregate net short position disclosures to replace individual firm disclosures.
-
Establishing a clear, regularly updated reportable shares list to enhance clarity and reduce compliance costs.
Read the full comment letter here.
###
About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
