According to a Reuters report, hedge funds recently utilised a loophole in the UK's insider-trading rules to gain access to confidential price-sensitive information regarding two ailing firms.
The news service revealed that leisure firm MyTravel and engineering firm Jarvis both recently sought to avoid collapse by offering their banks company control. Various hedge funds then purchased loans from the original bank creditors in order to secure cheaper access to the firms' shares.
In addition to the loans, some of the hedge funds obtained private reports which were intended for the banks, without needing to sign a confidentiality agreement. This meant that they were able to view and act on the price-sensitive information without alerting the companies' advisers.
Although acting on such information has been condemned by the Financial Services Authority as "likely to be inappropriate", no concrete guidelines have yet been put in place to deal with such practices.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment