Regulation-S.com is an online Regulation S Exchange and Marketplace. Shares are not traded directly through the Regulation-S.com portal, all trades are executed through our brokerage Membersites and an account with a brokerage Membersite is required in order to execute buy and sell orders.
There are several types of Regulation S securities, but Regulation-S.com only works with those that have underlying trading in the US marketplace, also known as Category 3.
Regulation S equities are a restricted form of equity, which means that they are being restricted from resale to US persons or in the underlying US marketplace for a period of between one and two years, depending on the quality and quantity of information available on the issuing company.
The regulations for resale of these securities after this restriction period are under "Rule 144" of the SEC, which also means that the number of shares you can sell between 1 and 2 years, even if the legend is removed, is restricted according to the share volume traded in the underlying marketplace.
Our facility provides non-US investors the capability to trade these
securities between each other during this restriction period. The liquidity
presented inside of the system is strictly dependent on the appetite
and purchasing from the clients within the system, so there is no guarantee
that any client in the system will purchase these shares from an account
holder; which is important to keep in mind.
For securities originally purchased through the system:
Securities are purchased through the account system. There are no additional fees for the purchase or account other than brokerage fees at the time of purchase. If a client desires to have the legend removed from their security holding between 1 and 2 years old, we will perform this process for them, charging them only the legal and transfer fees necessary to do so.
At the two-year anniversary of the security, our back office facility
removes the legend from the security automatically and
replaces the restricted securities in the client's account for free-trading
shares, allowing them to trade on the underlying US marketplace. This
process can take up to 60 days from the time of the anniversary. There
are no additional charges to the clients for legend removal of 2-year-old
holdings.
For previously purchased securities brought into the system by an account holder:
We currently charge an intake fee of $175.00 per certificate as administrative fees to initially bring the security into the system. If the client wants to remove the legend for sale on the US marketplace after a period of one year from the certificate issue date, we will process the necessary paperwork and charge back to the client the related legal and transfer costs. These costs normally range between $300.00 - $500.00 dollars USD.
Once the legend is removed, and the securities are sold, the client can request the funds be sent to them from within the system.
All of our procedures are online and brokerage fees and wire transfer fees are within international standards.
We do not work with the North American brokerage system, and therefore, none of our services are integrated with any of the financial institutions or products in use there.
We do not operate in North America and do not have representatives or offices in North America.
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