FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

FSA facing legal challenge over 'short selling' ban

As we alluded to in some of our recent posts about the financial system and the proposed ban on short selling, it seems that the industry is set to fight back. While the FSA has denied knowledge of an impending legal challenge it has been revealed that a number of leading hedge fund managers are taking court action and demanding compensation for the loss of their right to 'short sell'.



While this initial ban only covers the top 30 financial stocks, until mid-January when the situation will be reviewed, it is seen by many as going against the grain of the free market principle. Exploiting strengths and weakness in the financial systems of the world has been happening for decades and short selling is a valid area of business. Only weaker companies will suffer if short selling is done within the rules, i.e. no spreading of rumours and false stories to ensure the price falls.



On reflection is seems that the government may well be using a sledge hammer to crack a walnut because of the lack of success they have had in the court rooms with regards to the prosecution of traders who spread false stories and rumours for their own ends. Expect another back down from the authorities on what may well turn out to be an unlawful ban.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue