Clifford Chance

More Flexible Approach Announced for Non-U.S. Issuers Seeking to Rely on the Section 3(c)(7) Exception Under the 1940 Act

19 March 2012

New commentary recognizes more flexibility on the procedures that non-U.S. issuers of equity securities should implement when seeking to rely on the Section 3(c)(7) exception under the 1940 Act.

The authors of benchmark procedures related to an exemption under Section 3(c)(7) for offerings of equity or hybrid securities, frequently referred to as the 2008 Procedures , have published a new commentary to these procedures. The new commentary affirms the current market practice of selectively implementing elements of the 2008 Procedures for offerings by non-U.S. issuers depending on the particular facts of the issuer and the offering. 

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