London Gold and Commodities Exchange Discloses Internet Fund-raising Activity Regulation

Top Quote Due to the growing unregulated fund-raising undertakings on the internet, LGCEX has released its concluding policy highlighting the regulation on fundraising activities on the internet which is in accordance to the Corporation Law of the United Kingdom. End Quote
  • (1888PressRelease) August 03, 2012 - The policy, which was first introduced for public in August 2010, has undergone a thorough public consultation process.

    One of the Policy Statements of the Final Policy states "Offers of Securities on the Internet". This statement informs the public about providing offers over internet assurance which is under the regulation of the Corporation Law and that London Gold and Commodities Exchange will take into account internet offers to undergo regulatory proceedings.

    Mr. Gerard Backer, one of the London Gold and Commodities Exchange Commissioners, stated that the publication of this concluding internet policy is an expansion of the LGCEX commitment of adjusting to its regulatory approaches to the new challenges of the up-and-coming technology, particularly in the area of electronic commerce.

    By expounding the internet regulatory policy on the emerging circumstances in which London Gold and Commodities Exchange needs to regulate internet offers, advertisement of securities and invitations for shares, debentures and managed investments, LGCEX endeavors to lessen the regulatory costs for issuers of securities and uphold the use of internet as alternative means of doing regulated businesses.

    The disclosure of the Internet Policy Statement also supports the London Gold and Commodities Exchange perpetual collaborative efforts with other international regulatory bodies to synchronize regulatory means and to enhance effective enforcement plans that focus on internet fund-raising activities.

    However, LGCEX will not regulate any internet undertaking for securities offers in no misconduct takes place within the regulatory jurisdictions of the country, particularly if the offer is not offered to the market participants of the United Kingdom and clearly shows no effects to the economy and the people of the United Kingdom.

    Furthermore, LGCEX approach will be in harmony with that by other international regulators, especially in US and United Kingdom. The entire regulatory bodies' efforts to regularize the requirements of various regulatory jurisdictions are expected to diminish the issuers' compliance costs.

    LGCEX, as part of its continuing effort of serving the global consumers, will continue to be an active participant in the global regulatory discussions, especially in its involvement on the International Organizations of Securities Commissions, to ensure balanced market and business opportunities and avoid market frauds.

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