SFA to broaden bank inquiry
Friday 03 February 1995
Far from closing the investigation, as the Stock Exchange did with its own inquiry after only a short period, it is widely believed that the SFA, which regulates the investment banking sector, is looking hard at events in the run-up to the hostile takeover.
SBC's innovative use of derivative contracts as part of Trafalgar's bid led it to take stakes in several other regional electricity companies, whose share prices rose after the takeover was announced.
There is concern that SBC's interpretation of the rules may provoke the regulaters into a general tightening. The Stock Exchange last month quickly cleared SBC of any breach of its rules. But as a result of the concern prompted by SBC's methods, it is drawing up questions to put to members, and interested institutions.
These will include whether there is a need to change the rules covering derivatives and those relating to the undisclosed large positions that can be taken in companies by market-makers.
SBC, was a corporate adviser to Trafalgar. Its market-making operations bought shares in regional electricity companies between the bank's role as corporate adviser to Trafalgar House, and its market-makers. The fact that SBC's market makers took a sizeable, 8.2 per cent stake, in Yorkshire Electricity, which only emerged after the bid for Northern Electric became public, has become a matter of controversy.
The regulator appears to be trying to establish whether the implications of its findings so far fall into the disciplinary sphere, or whether the inquiry needs to be directed more at how the rules should be modified.
Sources within the Exchange as well as the regulators concede that SBC's innovations have exposed a weakness, if not a gap, in the rules covering the rapidly developing area of derivatives.
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Russian girl takes her own life after parents find pornography on her computer
- 3 Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Russian girl takes her own life after parents find pornography on her computer
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...