On 3 April 2018, the European Securities and Markets Authority (ESMA) published its final report on its technical advice under the Prospectus Regulation. The technical advice covers the format and content of prospectuses and the EU Growth prospectus, and the scrutiny and approval of prospectuses.
ESMA sets out a number of simplifications to the existing prospectus regime, aimed at reducing the cost and administrative burden on issuers. By way of example, it has amended its technical advice on the format of the prospectus, the base prospectus and final terms by removing the requirements for a mandatory cover note and a stand-alone use of proceeds section in the prospectus. ESMA has also produced a Universal Registration Document, which is a shelf registration document that can be used by issuers to offer securities to the market quickly.
Running alongside these simplifications, ESMA has proposed standard criteria with regards to the scrutiny of prospectuses, while also affording competent authorities a certain level of flexibility, to ensure greater levels of investor protection.
ESMA's technical advice is available here:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
