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ARTICLE · 18 FEBRUARY 2008

Covered Short Sales By Irish UCITS Funds Financial Regulator Policy Change

Dillon Eustace
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The Financial Regulator issued a revised policy note on October 5, 2007 in relation to physical short selling by UCITS.

IrelandFinance and Banking
Dillon Eustace
Dillon Eustace
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Policy Change Highlights



The Financial Regulator issued a revised policy note on October 5, 2007 in relation to physical short selling by UCITS.

Under this revised policy, UCITS will now be permitted to engage in covered physical short sales where the cover is provided through stock borrowing.  Additional rules apply as set out below. Going forward, this will mean that UCITS will be able to pursue long/short strategies without being limited to synthetic replication through derivatives.

Whilst of particular relevance for 130/30 type funds (see further below), this revised policy has broad application for UCITS wishing to short sell.

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