Oral question asked in the House of Lords, by Lord McIntosh of Haringey (Labour). It was answered on Tuesday, 13 January 2009.

Finance: Short Selling

Question: My Lords, does the Minister know whether the Church of England has been selling short?

Answer: My Lords, I am not aware of whether the Church of England has engaged in short selling; I am aware that Church of England commissioners, having taken advice on the ethical issues, engage in the lending of stock, which is frequently designed to support the completion and settlement of short-trading transactions. It is important to note that just about every major pension fund and every major endowment in this country is in some way or another involved in short selling. However, my noble friend made a fundamental point about stock lending practices. I have asked the FSA to look at whether those practices are sufficiently understood by practitioners and subject to appropriate regulation.

Secondary information