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In a bid to make the pressures on company share price movements more transparent, the Financial Services Authority has unveiled plans for a general disclosure regime for 'long' contracts for difference (CfD) positions, with a 3% disclosure threshold.

Effectively this means that existing share and CfD holdings in the same company will be aggregated for disclosure purposes. The proposals follow on from the consultation paper on CfDs published by the FSA in November 2007. The watchdog has decided a general disclosure regime will be the most effective way of addressing voting rights and corporate influence concerns.

The FSA will publish a policy statement in September 2008 with a feedback statement on the consultation responses, along with draft rules - regulation is expected to be in place by February 2009.

FSA director of markets Alexander Justham says. "Our goal is to provide an effective and proportionate disclosure regime that works for all involved, and sustains market confidence and efficiency. We have received extensive feedback on this issue and we recognise that views differ widely across the market. Taking this into account we have devised a solution that meets the concerns and issues raised."

The Association of Investment Companies supports the move. Director general Daniel Godfrey said, "Holders of CfDs have been able to secure stakes and voting powers in companies at arms length without the knowledge of other shareholders and the management of those companies.

"These undisclosed interests are contrary to good governance where managers are fully accountable to their shareholders and investors are able to see who else may have an influence over the company which they own. CfD disclosure will support investor confidence in the quality of UK markets and governance standards."