CFD activist debate reopened by FSA

The FSA has re-opened the debate on activist investors using contracts for difference (CFD to build ...

The FSA has re-opened the debate on activist investors using contracts for difference (CFD to build up positions in investment trusts. The authority has issued a consultation paper proposing greater disclosure of CFD stakes in investment companies. Changes considered include requiring CFD holders to reveal all economic interest of stakes of 5% or more in a company's shares. Currently stakebuilders can acquire substantial amounts of shares, potentially well into double figures, without making a disclosure. The AIC, which published its own research into the issue, welcomed the move by...