The Financial Services Authority (FSA) has extended the current disclosure regime on the short-selling of financial stocks indefinitely.

Under current FSA rules, investors must disclose a new net short position in the stock of a financial sector company once a position reaches 0.25 per cent of a company’s share capital.

The FSA did not plan to keep the new rules - which were originally due to expire June 30 – permanently, but is reviewing options that would involve the disclosure of short-selling for all UK stocks and be more internationally aligned.