On July 13, the European Securities and Markets Authority (ESMA) published a press release announcing two consultations with respect to the new EU Prospectus Regulation.
The first consultation paper contains draft technical advice on the minimum content for the information that must be made available to investors when applying for a certain exemption from the requirement to produce a prospectus. The second consultation paper includes draft guidelines on the risk factors featured in a prospectus. While the guidelines are addressed to national competent authorities, the guidelines indicate that financial market participants should take them into account when preparing prospectuses.
ESMA previously published technical advice regarding, among other items, the format and content requirements for a prospectus and the EU growth prospectus under the Prospectus Regulation in April 2018 (for more information, see the Corporate & Financial Weekly Digest edition of April 6, 2018).
The consultations close on October 5 and, according to ESMA’s press release, it will publish final reports following the consultations by March 31, 2019.
On July 17, ESMA issued a final report with draft regulatory technical standards (RTS) with respect to the Prospectus Regulation. Key areas that the RTS cover are:
- key financial information to be disclosed for the prospectus summary;
- advertisements to retail investors;
- the requirement to publish one or more supplements to a prospectus; and
- arrangements for the notification portal used for passporting prospectuses.
The RTS are now with the European Commission for endorsement.
ESMA’s press release announcing the launch of the two consultations is available here.