Our client alert dated 19 September 2008 reported on the temporary emergency measures taken by the UK?s Financial Services Authority (FSA), which impose a ban on all short-selling in publicly-quoted UK financial sector companies and a heightened obligation to disclose net short positions in the shares of such companies.

Further to the initial announcement of these measures, the FSA on 23 September 2008 published the Short Selling (No 3) Instrument1, which conformed the definition of a ?market maker? for the purposes of the disclosure obligation to its definition for the purposes of the dealing prohibition and clarified the definition of a ?UK financial sector company? to mean that the ?parent undertaking? of a bank or insurer must belong to the same ?group? whose main business is ?financial services?.

Please read full alert for more information.