One of Britain’s most infamous short sellers has hit out at the City watchdog for removing disclosure rules, saying it will give firms an excuse to spin ‘conspiracy theories’ about those who criticise them.
Last week, the Financial Conduct Authority said it would stop publishing the identities of investors who take out bets against a company as part of a shakeup designed to boost economic growth.
Currently, short sellers who hold more than 0.5 per cent of a company’s shares are named on the authority’s website.
Short sellers make their money by taking out ‘short positions’ against a stock, betting that a company’s share price will fall.
Disclosure: The Financial Conduct Authority said it would stop publishing the identities of investors who take out bets against a company
But Fraser Perring, who made his name betting against German payments firm Wirecard and UK social housing provider Home REIT, both brought down after becoming mired in scandal, said the change would make it harder to hold companies to account.
‘The FCA’s plan may protect legitimate investors from retaliation, but it also gives firms more room to spin false conspiracy narratives about short sellers,’ he said.
‘Instead of confronting evidence and cleaning up their governance, too many firms have learned that smearing critics works or at least deflects their misconduct.’
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