Companies could be given powers to force hedge funds to declare secret stakes held through derivatives if proposals being considered by the FSA are approved. The regulator is considering extending “section 212″ powers that companies can use to force investors to reveal their shareholdings to cover derivatives as well, according to people who have seen drafts of the document. Options are expected to include aligning the rules for disclosure of shareholdings above 3 per cent to include CFDs or other derivatives, or forcing banks to reveal big CFDs they sell.
