Who does this affect?

Anyone that short sells securities, stapled securities or managed investment products, and brokers and holders of AFSLs that trade such products. Also market participants with pre-22 September exposures that need to be hedged.

What do you need to do?

Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities.

Author
Martin James  
Partner
Mark McFarlane  
Partner
T +61 2 9296 2478
Scott Farrell  
Partner
T +61 2 9296 2142

Sydney
David Friedlander  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities. Martin James  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities. Damien Richard  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities. Rowan Russell  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities.

Melbourne
John Malon  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities. Ian Paterson  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities.

Brisbane
Berkeley Cox  
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities.

Hong Kong
Richard Mazzochi  (馬紹基)
Consider the impact of the extension to stapled securities and interests in managed investments schemes of the ASIC ban on covered short selling of Australian securities.

23 September 2008

ASIC modifies covered short selling ban - 23 September 2008

Late yesterday the Australian Securities and Investments Commission (ASIC) further modified the ban it introduced on covered short selling to extend it to managed investment schemes and stapled securities. This will be reviewed in 30 days along with the ban in relation to securities. See the ASIC explanatory statement and class order.

In addition there has been an indication from ASIC that it will issue a no action letter to certain market participants who may need to hedge exposures arising under obligations entered into prior to 22 September 2008. See the ASIC release. As at the time of publication of this Alert, the form of that no-action letter has not been issued. Market participants should ensure they receive a no action letter from ASIC regarding pre-22 September 2008 exposures that need to be hedged.