In 2022, the Securities and Futures Commission approved investment contract securities for piecemeal investment operators, with new guidelines enhancing investor protection. Due to their unique structures, these guidelines require a lawyer's legal review opinion for investment contract securities, even for domestic issuers. The legal opinion should cover various aspects, including compliance with regulations and potential legal disputes.

The guidelines aim to clarify the classification of investment contract securities and provide examples for guidance. This requirement is necessary due to the diverse nature of these securities. Given their variable business structures, it's essential to anticipate potential legal issues when dealing with investment contract securities.

In the future, we can expect investment contract securities based on various assets to become more prevalent. Businesses should engage experienced lawyers early on to ensure compliance with laws and regulations based on their specific structures.

URL : The Need for Legal Opinions in Securities Filings for Piecemeal Investments