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.
Board creates magnetic field to achieve lift
Follow the latest events from this Champions League fixture
Like Madonna, Sister Cristina Scuccia's video is also set in Venice
Singer says the track was 'force-fed down people's throats'
techThe original free dating app will remain the same, developers say
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 5 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....