New short selling restrictions in certain jurisdictions

Belgium, France, and Spain - Fact Sheet

Introduction The restrictions: the current volatility in the global financial markets, and specifically the financial sector, has prompted the national regulators of France, Belgium, Spain and Italy to introduce temporary restrictions on short selling of certain financial stocks with immediate effect, from 12 August 2011. The restrictions in France, Italy and Spain are to remain in effect for a period of 15 days, subject to renewal at the discretion of the respective regulators. The short selling restrictions in respect of Belgian financial stocks appear to apply indefinitely. Earlier this week Greece introduced similar measures in respect of short selling (to be in force for 2 months). ESMA has made a statement concerning these developments, which is available here. The common features of the short sale bans are summarised below and specific information in relation to each is provided via hyperlinks. The position is stated as at 12 August 2011. Our summary is indicative only and may be subject to change if further regulatory developments in this area are announced. For specific questions on the impact of the rules on specific situations, please seek appropriate professional advice via your Linklaters contact or the person noted for the relevant jurisdiction. The position of the UK FSA: The FSA has stated that it has no current plans to introduce a short- selling ban in the UK: "We have an existing short selling disclosure regime a round financial stocks in place and we continue to monitor the activity in our markets accordingly. We have no current plans to introduce a short-selling ban in the UK."

Summary The short selling ban imposed in France, Belgium, Spain and Italy may be summarised as follows:  the ban is applicable to the banking/financial sector only;

 save for Belgium, the short selling ban is in force for 15 days from the date of implementation of the ban, and will be subject to renewal at the discretion of the respective regulators. Belgium appears to have imposed an indefinite ban;

 the short selling ban prohibits the creation and increase in size or renewal of existing short positions;

 naked and covered short sales are both prohibited;

 the short selling ban includes derivatives which may be composed of one or more financial sector stocks;

 intra-day short sales are prohibited;

 financial intermediaries who act as market makers or liquidity providers when they are operating under a contract with the relevant market undertaking or the issuer concerned, or acting as counterparty in the context of block trades of equities are exempt from the ban.

The existing short selling disclosure obligations in respect of each jurisdiction still remains in force.

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Short selling restrictions Belgium FSMA announcement FSMA FAQ Measures regarding the short selling of securities were adopted by the Belgian and Markets Authority (FSMA) on 22 September 2008. These continue to be in force, as modified by the Belgian FSA on 12 August 2011 in respect of short selling of financial instruments in the following financial institutions: (i) SA, (ii) Ageas NV/SA, (iii) KBC Groep NV and (iv) KBC Ancora CVA.

Linklaters contacts Jacques Richelle (Partner), Etienne Dessy (Counsel)

France AMF announcement AMF FAQ

Linklaters contacts Marc Perrone (Counsel)

Italy CONSOB announcement (in Italian) The list of issuers in respect of which a short selling ban is in force is as follows: Azimut Holding - - - - Banca Ifis - - Banca Monte Paschi di Siena - Banca Popolare Emilia Romagna - Banca Popolare Etruria e Lazio - Banca Popolare Milano - Banca Popolare Sondrio - Banca Profilo - Banco di Desio e Brianza - Rsp - - Cattolica Assicurazioni - Credito Artigiano - - - Fondiaria -Sai - Generali - - - Mediolanum - Milano Assicurazioni - Ubi Banca - - Unipol - Vittoria Assicurazioni.

Linklaters contacts Elio Indelicato (Managing Associate)

Spain CNMV announcement CNMV FAQ

Q&A.pdf

Linklaters contacts Iñigo Berricano (Partner), Pablo Medina (Associate)

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Timetable  11 August 2011 ESMA issued a public statement announcing the intention of the regulators of Belgium, France, Italy and Spain to introduce a short selling ban.

 12 August 2011 The short selling restrictions took effect in Belgium, France, Italy and Spain.

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