Absolute return managers criticise FSA over shorting ban

Absolute return managers have admitted the FSA ban on short-selling will affect portfolios in the ne...

Absolute return managers have admitted the FSA ban on short-selling will affect portfolios in the near term, and criticised the regulator for the rule change. At midnight on 18 September the FSA temporarily banned short selling of 29 financial stocks due to concerns short sellers drove down the share prices of companies such as HBOS and contributed to the overall crisis of confidence in financial markets. BlackRock and Cazenove said the restrictions will obviously restrict managers' abilities to create short positions in the financials sector but said long-term effects will be negligibl...