'The FSA is to be congratulated,' says AIC director general Daniel Godfrey. 'It has created a straightforward, integrated disclosure obligation which will remove the threat that CfDs could be used to exert behind-the-scenes influence on company decisions or as part of a covert stakebuilding exercise. This can only be good for investors.

'Getting here has involved lengthy discussion lasting more than a year. The FSA was correct in wanting to get the rules right, but now the decision has been made it is also right to apply them without delay.

'While the overall message from today's announcement is a positive, there is one wrinkle as the rules on CfD disclosure will only apply to interests in UK companies. Investors in overseas companies listed in London will remain exposed to the market failures identified by the FSA.

'So, while the majority of the risk has been removed, there is a remaining gap waiting to be plugged and we will be exploring this with the FSA in due course to see if this can be addressed.'