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Introducing a chaperoning exception on onshore solicitation for financial services and products

By February 13, 2023Monaco News

In August 2022, the general prohibition for entities not licensed in Monaco to conduct active marketing towards Monaco investors had received important clarifications. Please see our news article here:

Regarding onshore initiatives, as an exception visits were allowed in respect of (i) institutional investors, (ii) licensed financial entities and (iii) other types of investors with the involvement of a Monaco licensed financial entity.

For the last category of investors, it was unclear what the involvement of the Monaco licensed financial entity needed to be to fall under the scope of the exception. This has now been clarified by Ordinance 9.737 dated 2 February 2023 (published in the Monaco Official Journal dated 10 February 2023).

Ordinance 9.737 indicates that when such investors are clients of a Monaco licensed financial entity, a meeting may be held in Monaco with representatives of an unlicensed entity provided such meeting happens in the presence of a representative of the Monaco licensed financial entity. Such exception is often referred to as a “chaperoning exception”.

Onshore visits remain a sensitive subject as they constitute indicia of an activity being conducted in the Principality and require specific assessment and advice.

We continue to monitor this matter closely and are ready to deliver tailored legal advice and/or adapt your country manuals depending on your objectives.

Please find herein a link to Ordinance 9.737 dated 2 February 2023: