Financial Commission Decides to Ban Fractional Investment in Residential Properties

The Financial Services Commission has excluded residential properties from the underlying assets of fractional investment securities. This decision is a measure to ensure financial market stability and maintain social order. In the 'Best Practices for Issuing Non-Monetary Trust Beneficiary Securities' announced on the 4th, the Financial Commission stated that the underlying assets must not contradict financial market stability and social order, and that residential properties, commercial real estate, and assets related to gambling industries are generally not permitted. Lease agreements must specify a damage compensation clause to prevent residential use. The aggregation of underlying assets is allowed under specific conditions and is limited to assets of the same type and rights. Investors must clearly understand the criteria and purpose of aggregation, and the prices, risks, and return structures of individual assets must be distinctly provided. Non-performing assets are prohibited, and the number of assets and maximum trust value will be determined with investor protection in mind. Sellers are required to retain 5% of the securities under the Asset Securitization Act, and issuers must disclose operational reports quarterly. Additionally, it must be noted that if an investor sells more than 5% of the issued amount, they are obligated to submit a sales report.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.