The Committee of European Securities Regulators (CESR) has published a report entitled CESR’s report on the supervisory functioning of the Prospectus Directive and Regulation. The report assesses whether the new prospectus regime is fulfilling its objectives of protecting investors and lowering costs of capital, and in particular, whether it is contributing to the development of the Single Market for securities. The findings of the report were produced following a call for evidence in November 2006 and an open hearing which was held in January 2007.

The report states that generally market participants are satisfied with the new European legislation. However, there are a number of areas where divergent practices of different national regulators pose problems. For instance, in relation to the use of certain definitions (i.e. that of public offer, transferable securities and qualified investors) or the use of exemptions which determine whether the obligation to produce a prospectus exists.

In the report it states that CESR expects the report to be used for its future Level 3 supervisory convergence agenda in those areas where CESR can positively act. It may also form the basis of CESR’s contribution to the review of the Prospectus Directive by the European Commission in 2008.

View CESR publishes the findings of a review of the supervisory functioning of the Prospectus Directive and Regulation