As reported previously, the relevant EU authorities decided at the end of 2016 that a new EU Prospectus Regulation will replace the EU Prospective Directive. According to the updated timeline circulated by the International Capital Market Association (ICMA), the new EU Prospective Regulation is expected to be published in June 2017. The new EU Prospectus Regulation becomes operative 24 months after its publication, which means that the new regime is expected to apply as of June 2019.

In light of the new timeline, the EU Prospectus Regulation should result in the following consequences for issuers who currently have to file an EU prospectus for share-based offerings to employees in Europe:

  • Issuers who file their EU prospectus in the first half of the calendar year will need to continue to file EU prospectuses for 2017, 2018 and 2019
  • Issuers who file their EU prospectus in the second half of the calendar year will need to continue to file EU prospectuses for 2017 and 2018.