The Alternative Investment Management Association, the international hedge fund industry association, has formally registered its concern with the UK's Financial Services Authority over th

The Alternative Investment Management Association, the international hedge fund industry association, has formally registered its concern with the UK's Financial Services Authority over the reasons, timing and method of its announcement of new Code of Market Conduct Provisions on Short-Selling, announced by the regulator earlier this month.

As of last Friday, the FSA has introduced new rules requiring disclosure of short positions above the threshold of 0.25 per cent of the issued shares in companies undertaking rights issues. The regulator says the new measures are designed to reduce the scope for market abuse.

Aima asked the FSA for a delay to the implementation of the regime in order to facilitate compliance, due to the significant impact of the provisions on some of its members. It also queried the justification for the invocation of special powers under the Financial Services and Markets Act 2000, which enabled the FSA to introduce the measure without consultation, and has lodged 'an extensive set' of queries on technical issues.

In a statement, the association said: 'The FSA has not delayed implementation of the regime, thus Aima is now in consultation with our membership as to the options available to them to best address the FSA's regulatory framework for short-selling.

'In the meantime, Aima has requested from the FSA as soon as possible the specific findings of any investigations that have led to this unprecedented event as well as clarification on the many issues outstanding on the definitions, scope and implementation of the regime.'

Aima has 1,280 corporate members in 49 countries including hedge fund managers, fund of hedge funds managers, prime brokers, providers of legal and accounting services and fund administrators.