Post by niseag on Jan 15, 2012 9:08:32 GMT 4
ESMA’s definition of a retail cascade is “a distribution mechanism where securities are offered to retail investors not directly by the issuer, but by a distribution network of financial intermediaries.” It considers that this can encompass more than one structure – firstly, a sale from the issuer to the financial intermediaries and a subsequent sale by the intermediaries to the retail investors, and secondly, a placement of the issuer’s securities to the retail investors by the intermediaries, without the intermediaries actually acquiring those securities at any point. In both cases, though, the financial intermediaries are acting in association with the issuer.
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