Underwriting arrangements

Types of arrangement

What types of underwriting arrangements are commonly used?

In accordance with the Securities Law, the possibility of underwriting exists for entities authorised by the MSEC, but it is not commonly used. Few of the entities authorised by the MSEC have registered for this type of activity.

The arrangements are focused on execution of the transactions and the activities on behalf of the issuer of the securities that are required for the successful public offering of securities with or without a mandatory purchase of the unsold securities.

Typical provisions

What does the underwriting agreement typically provide with respect to indemnity, force majeure clauses, success fees and overallotment options?

As mentioned above, the details of the underwriting arrangement are not regulated in detail by the legislation, and in essence, this is a matter for the parties to agree on.

Other regulations

What additional regulations apply to underwriting arrangements?

Other than the provisions contained in the Securities Law, no regulations regarding underwriting arrangements exist.