2006 Fiscal Year Final Research Report Summary
Financial regulations on the financial products and investments for the wealty elders
| Project/Area Number |
17530079
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Civil law
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| Research Institution | Waseda University |
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Principal Investigator |
KAWASHIMA Izumi Waseda University, Faculty of Social Sciences, Professor (50177672)
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| Co-Investigator(Kenkyū-buntansha) |
IWASAKI Masaaki Yokohama National University, International Graduate School of Social Sciences, Professor (20183014)
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| Project Period (FY) |
2005 – 2006
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| Keywords | high net worth elders / qualified investment scheme / accredited investors / sophisticated investors |
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| Research Abstract |
The Financial Services and Markets Act 2000 in UK imposes a restriction upon the ability of unauthorized person to communicate an invitation or inducement to engage in investment activity. Unauthorized persons are prohibited from promoting financial products and services unless the content of the communication has been approved by an authorized person, or the communication falls within the exemptions specified in the Financial Promotion Order. The certified high net worth individual exemption and the sophisticated investor exemption are provided by the Order. The Promotion of Collective Investment Schemes(Exemption) Order establishes certain classes of investors, including high net worth individuals, whereby if individuals can be certified as belonging to these classes, they may receive financial promotion. Some of these exemptions are limited to promotions of shares of unlisted companies or the funds that invest wholly or predominantly in unlisted companies.
Under the Securities Act of
… More
1933 and Regulation D in US, some exemptions to the registration requirements are available to certain offerings that constitute private placement. Rule 506 of Regulation D provides an exemption to accredited investors including high net worth individuals and limited number of non-accredited investors who satisfy an investment sophistication standard. In regard with investment company registration under the Investment Company Act of 1940, the similar exemptions are provided. However, such exempted transactions are not exempted from the antifraud, civil liability, or other provisions of federal securities laws.
Our new securities law amended in 2006 introduces new categories of the public investors and the accredited institutional investors in which high net worth individuals are included. In contrast with the UK and US financial promotion regimes, our accredited institutional investors are exempted from the application of some investor protection provisions including the provision of suitability principle. There remains some problem in regard to our exemption regime of accredited institutional investors Less
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