Regulation

Forward Selling: A Crime Against Shareholders?

Roger has recently written about the censure of Cornhill Capital, in the matter of New World Oil & Gas. The full censure notice, setting out the gory details of the case has been published here: http://www.londonstockexchange.com/traders-and-brokers/rules-regulations/change-and-updates/stock-exchange-notices/2017/n0117.pdf This case centres around the practice of "forward selling", a practice which is not unusual at present. So, what is forward selling? Forward selling occurs when a company agrees to issue shares to a third party and that third party sells those shares in the market, prior ...

Trusting the regulators? You should not.

The recent case of Catalyst Investment Group highlights the fact that sensible investors should not rely on the financial regulators to warn them about dubious investments and those who promote them. Indeed so far as the FCA, and its predecessor the FSA, is concerned, the fact that a business is regulated by them does not necessarily mean they are trustworthy at all. All it means is that they have met the regulatory requirements at some point in the past.The recent outrageous ...

EuroFinuse attacks lack of retail investor representation

Guillaume Prache of EuroFinuse (of which ShareSoc is a member) has been attacking the lack of adequate retail investor representation on European bodies that devise financial market regulations. Specifically he has attacked the European Securities and Markets Authority (ESMA) and its Securities and Markets Stakeholder Group where only a few of the 30 members on the committees are consumer advocates (i.e. retail investors). He complains the big banks are dominating policy development on European financial market regulations which of course now ...