ARTICLE
7 October 2019

ESMA Guidelines On Risk Factors Under Prospectus Regulation

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Ganado Advocates

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Ganado Advocates is a leading commercial law firm with a particular focus on the corporate, financial services and maritime/aviation sectors, predominantly servicing international clients doing business through Malta. The firm also promotes other areas such as tax, pensions, intellectual property, employment and litigation.
This said, the Guidelines will undoubtedly also be of help to issuers and advisors in their preparation of risk factors.
European Union Corporate/Commercial Law

On 1 October 2019, ESMA published guidelines on the risk factors to be published in a prospectus in terms of the new Prospectus Regulation (the "Guidelines") which Guidelines shall apply from 4 December 2019. Under the new Regulation, risk factors are to be categorised according to the type of risk and must be listed in order of materiality (which refers to a combination of likelihood of occurrence as well as the scale of consequences).

The Guidelines are therefore primarily intended to help competent authorities when reviewing the specificity, materiality and presentation of risks factors in a prospectus. This said, the Guidelines will undoubtedly also be of help to issuers and advisors in their preparation of risk factors.

The Guidelines can be accessed 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.

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