Regulatory Alerts2025-11-04
Risks of Criminal Behavior in Exempt Offerings
The Dutch Authority for the Financial Markets (AFM) issued this report to highlight significant risks of criminal behavior in exempt securities offerings, particularly as the EU Listing Act raises the exemption threshold from €5 million to €12 million starting June 2026. The analysis reveals that these offerings frequently target non-professional investors with high-yield promises and investments in illiquid assets, leading to incidents of fraud, misrepresentation, and illegal fund-raising. To mitigate these risks, the AFM intends to implement more proactive, data-driven supervision and urges gatekeepers and investors to exercise heightened due diligence.
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