Prospectuses for investors

‘EU Legislation in Progress’ briefings aim to provide Members of the European Parliament with systematic and automatic analysis on all substantial proposals for EU legislation at every stage of the legislative procedure. Each contains an account of the purpose, content and legal aspects of the legislation proposed, in particular analysing what the legislation would change, as well as any previous legislation and the background. An overview of stakeholders’ views is also provided, as well as the opinions of national parliaments and the two advisory committees.

They are all made publicly available for stakeholders and the public.On 30 November 2015, the European Commission published a proposal for a regulation on prospectuses (legal documents that provide details about an investment offer in an easily analysable format) to replace Directive 2003/71/EC, as amended by Directives 2008/11/EC, 2010/73/EU and 2010/78/EU.

The aims of the regulation are to contribute to further financial market integration and to improve investor protection in the European Union. The proposal broadens the scope of the legislation and introduces changes to how the prospectus is drawn up.

The Commission consultation shows that stakeholders welcome the initiative and support the proposed measure to simplify and shorten the prospectus for frequent issuers, secondary issuances and small and medium-sized enterprises, freeing it from any unnecessary and repetitive information.

On 3 June 2016, the Dutch EU Council Presidency published its proposal for a general approach on the Commission proposal and on 15 September 2016, the European Parliament adopted its amendments to the Commission proposal. Finally, on 16 December 2016, the European Parliament and the Council stroke a compromise on the prospectus Regulation, which would then be adopted formally by the co-legislators.

EP: EPRS: Briefing: EU Legislation in Progress http://epthinktank.eu/eu-legislation-in-progress/

ESO: Background information: Proposal for a Regulation of the European Parliament and of the Council on the prospectus to be published when securities are offered to the public or admitted to trading http://www.europeansources.info/record/proposal-for-a-regulation-of-the-european-parliament-and-of-the-council-on-the-prospectus-to-be-published-when-securities-are-offered-to-the-public-or-admitted-to-trading/

ESO: Background information: Capital markets union: Presidency and EP reach deal on prospectus rules http://www.europeansources.info/record/capital-markets-union-presidency-and-ep-reach-deal-on-prospectus-rules/

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