The Council adopted updated rules on the prospectuses. A prospectus is a legal document that companies issue to potential investors about the securities they are issuing and about themselves.

In addition to the information about the securities, the prospectus contains detailed information about the company's business, finances and shareholding structure. Prospectuses are therefore an essential source of information for investors and one of the key tools for companies wishing to raise capital across the EU securities markets.

The first prospectus directive was adopted in 2003 and revised in 2009. The updated prospectus rules are in the form of an EU regulation. 

The Commission issued the proposal for the prospectus regulation on 30 November 2015 as part of the legislative proposals aimed at creating a capital markets union. The regulation is also part of the Commission's commitment to simplifying EU laws and making them more effective and efficient (REFIT).