Any issuance of securities requires the SC’s approval under Section 212 of the Capital Markets and Services Act 2007 (CMSA), including the issuance of shares by a public company (listed or otherwise) or any unit trust products or bonds. In addition, any distribution or sales of such securities would require a prospectus that is registered with the SC.
The requirement to register a prospectus with the SC and issue it to investors ensures that investors are provided with all the information needed on the company, its investment scheme, and the investment risks involved to enable investors to make an informed decision on their investments.
These disclosures form part of the protection required by law for investors. Investors must always ensure they have the benefit of this protection by asking for a copy of the prospectus if they have not been provided with one by the company.
Members of the public are encouraged to contact the SC should they be uncertain as to whether the offer of such securities to them complies with the above requirement.
The SC reminds investors to be wary of investment schemes promising extraordinarily high returns within a short investment period. In addition to undertaking a thorough check of the company and its scheme, investors are advised to verify that the company has a sound basis to justify the promised returns, and that regulatory approval for the activity has been obtained where necessary. In cases where the scheme does not fall under the purview of any regulator, the public is urged to exercise due caution and carry out a detailed review of both the company and its scheme prior to investing.
Regulated activities such as dealing in securities, investment advice or fund management related to securities must be licensed by the SC. A list of licensed persons is available here. The SC continues to be on the alert for illegal investment schemes and welcomes complaints and information from the public about such schemes, which may be emailed to
[email protected] or via tel: 03-6204 8999/8777.
