20 December 2000

FESCO Paper on Prospectuses

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In the frame of the Financial Services Action Plan, FESCO has issued a report for the EU Commission containing proposals to improve cross border offering. The proposals in this paper would deliver the objective of home State control of the prospectus for cross-border offerings while, at the same time, maintaining appropriate protection for investors. The work in FESCO has been done in two stages. The first stage was to develop an option for issuers to shelf register and then just issue a securities note for each capital raising exercise in whichever jurisdiction(s) in the EU. In the summer of last year, FESCO consulted on this approach and received many responses. While broadly supportive of the principle of shelf registration, an overwhelming number of respondents wanted a more ambitious approach that removed the responsibilities of the host state for the vetting of prospectuses. The second stage of the work therefore, was to develop this more ambitious approach.

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