Press Release: Commission cuts red tape and improves investor protection on securities prospectuses

In line with the 'Better Regulation' principles, on 24 September 2009 the European Commission put forward a proposal for the review of the Prospectus Directive. The proposal was part of simplification exercise within the Action Program of the European Commission for the Reduction of Administrative Burdens in the European Union. The proposal increases legal clarity and efficiency in the prospectus regime and reduces administrative burdens for issuers and intermediaries. It also bears in mind the importance of enhancing the level of investor protection and ensuring that the information provided is sufficient and adequate to cover the needs of retail investors. It reflects consultation with all major stakeholders. The proposal now passes to the European Parliament and the Council of Ministers for consideration.

European Commission: MEMO/09/412: Prospectus Directive: Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/412&format=HTML&aged=0&language=EN&guiLanguage=en

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