In 2022, the Securities and Futures Commission introduced new guidelines aimed at enhancing investor protection by approving investment contract securities for piecemeal investment operators. These guidelines, applicable to both domestic and foreign issuers, necessitate a legal review opinion by a lawyer due to the unique structures of these securities. The legal opinion covers areas such as regulatory compliance and the potential for legal disputes. The guidelines seek to provide clarity on the classification of investment contract securities and offer illustrative examples for guidance, considering the diverse nature of these securities. Given the variable business structures associated with investment contract securities, it is imperative to proactively address potential legal issues. In the future, we can anticipate the increasing prevalence of investment contract securities based on various assets, underscoring the importance of early engagement with experienced lawyers to ensure compliance with specific legal requirements and regulations.

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