FCA takes first enforcement action for breaches of Short Selling Regulation
19 November 2020
In October 2020 the FCA issued a Final Notice to Asia Research and Capital Management Ltd (ARCM).
The FCA found that between 22 February 2017 and 3 December 2019, ARCM failed to make a number of notifications to the FCA and disclosures to the public that it was required to make under the Short Selling Regulation (236/2012) (SSR) in relation to a net short position in a particular issuer’s shares.
As a result, the FCA took enforcement action against ARCM for breaching Articles 5 and 6 of the SSR. It imposed a financial penalty of £873,118 on ARCM.
This is the first time the FCA has taken enforcement action against a market participant for breaching the SSR. The case also involves several other interesting practice points considered in the full linked article below.