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{{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about | {{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about that by [[law firm]]s, who have a direct interest in being sceptical about it, since that way they get to write a turgid five-hundred page [[prospectus]] cataloguing any risk they can think of without themselves ''taking'' any risk — for “[[Professional client|professional]]” or “[[Qualifying institutional buyer|institutional]]” investors buying your deal but it won’t for [[retail]] investors, at least beyond the regulatory reach of the [[Securities and Exchange Commission]]. | ||
In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. | In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. (But [[you would say that]], [[legal eagles]]...) | ||
The legal | The [[legal eagle]]’s perfect place is to counsel her clients — also legal eagles, remember, so well-minded to take such advice — that the firm should have big-boy letters ''and'' a five-hundred page [[prospectus]], because that way the lawyers get to charge you £1,500 per hour for wasting trees while taking no actual risk — because, big-boy letter, you know? | ||
{{sa}} | {{sa}} | ||
*[[Qualifying institutional buyer]] | |||
*[[Prospectus]] |