The CFA Society of the UK, supporting ASIP, CFA and IMC professionals.

 Sat 04 Jul 2009

UK Society of Investment Professionals - CFA Institute

CFA UK supports FSA ruling on CFDs

CFA UK welcomes the decision by the Financial Services Authority (FSA) to introduce a new disclosure regime for holdings of Contracts for Difference (CFD).

In future, investors will be required to disclose holdings of more than 3% in any one company in a combination of CFDs and shares. 3% is the current level at which holdings of shares alone have to be disclosed.

The FSA has rejected its initial preferred option which would have provided a safe harbour from disclosure. The society supports this decision believing that a safe harbour would provide too many loopholes which could undermine the regime.

The FSA’s ruling accords with the society’s response to the consultation paper which was drawn up after we surveyed members. Over three hundred members completed the survey which delivered a clear message: change was long overdue. 81% of respondents supported a change to the current regime and an overwhelming 87% believed that all economic interests held through CFDs, above a certain threshold, should be disclosed.