It is acknowledged that financial arrangements can be used to shift the ownership, in whole or in part, of a security or relevant investment risks. It is also the case that such arrangements have been used in dividend arbitrage and dividend stripping schemes, such as the Cum/Ex and Cum/Cum schemes, with the sole purpose to obtain refunds in cases where there was no entitlement thereto or to increase the amount of refund to which an investor was entitled. It should be possible to consider arrangements such as futures contracts, repurchase transactions, securities lending and securities borrowing, buy-sell back transactions or sell-buy back transactions, derivatives, margin lending transactions and contracts for difference as financial arrangements in cases where they imply a temporary or permanent split between the natural person or entity bearing the economic risks of the investment and the legal owner of the share or underlying rights. Those examples are not exhaustive.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
