Regulatory Alerts2023-03-29
Classification of fractional investments as investment instruments
The Belgian Financial Services and Markets Authority clarifies that fractional investments offered to the public in Belgium constitute investment instruments under the Prospectus Law of 11 July 2018. The regulator explains that these structures, whether based on derivatives or co-ownership, create separate financial products with distinct legal and economic characteristics from the underlying shares, thereby triggering specific regulatory obligations. Consequently, issuers must publish a prospectus or information note for each separate investment instrument and adhere to MiFID and PRIIPs requirements regarding transparency, product governance, and investor protection.
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