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MFA Statement on the Inclusion of a Short-Selling Review in Chancellor’s Financial Services Reform Package

Washington, DC – Managed Funds Association Head of Global Government Affairs Jillien Flores today issued the following statement in response to the inclusion of a short-selling review in the UK Chancellor’s Edinburgh reforms:

“We welcome the Chancellor of the Exchequer’s statement that will help make UK capital markets more attractive, efficient, and competitive.

“In particular, we welcome the announcement of a Review of harmful rules around short selling. Short selling is a powerful tool that enhances market liquidity, promotes price discovery, and exposes corporate fraud.

“The current regulatory framework deters short selling and increases market volatility, harming investors, markets, pension funds and other institutional investors across the UK.

“MFA looks forward to contributing to HMT’s Call for Evidence on the Short Selling Regulation.”

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About the Global Alternative Investment Industry

The global hedge fund and alternative asset management industry, including hedge funds, credit, managed futures, and hybrid funds that invest in private companies, has assets under management of $4.3 trillion (Q3 2021). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About the Managed Funds Association

Managed Funds Association (MFA) represents the global alternative investment industry and its investors by advocating for regulatory, tax, and other public policies that foster efficient, transparent, and fair capital markets. MFA’s more than 150 member firms collectively manage nearly $2.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time. MFA has a global presence and is active in Washington, London, Brussels, and Asia. www.managedfunds.org.