Regulatory Alerts2010-12-20
Public offers of corporate bonds good practices
The Belgian financial regulator CBFA issued good practices to address irregularities in public corporate bond offers, including pre-subscriptions, restricted access for retail investors, and prospectus availability delays. The regulator recommends replacing the 'first come, first served' allotment method with proportional reduction to ensure fair treatment and equal footing for all potential investors. Additionally, the document mandates strict compliance with legal deadlines for prospectus publication and prohibits intermediaries from acquiring bonds for their own account during oversubscribed offers.
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