Reliance on external compliance leads to first fine under Short Selling Regulation

By Neasa MacErlean

TheFCA has taken enforcement action for the first time under the Short SellingRegulation 2012 (SSR) — by fining a Hong Kong hedge fund in relation to the“largest net short position ever held” in a company floating on the main marketof the London Stock Exchange. A lack of in-house compliance expertise is seenby the regulator as a major cause of the breach.