The Commission identified some elements in the Directive that may create in practice unnecessary burdens and unjustified costs for companies and intermediaries, including the definition of qualified investors.
The Commission launched a consultation to improve and simplify the application of the Prospectus Directive.
The Commission identified some elements in the Directive that may create in practice unnecessary burdens and unjustified costs for companies and intermediaries. The issues include:
Ø definition of qualified investors
Ø revision of exempt offers ('retail cascade' issue and employee shares schemes)
Ø revision of annual disclosure obligation
Ø time limit for exercise of right of withdrawal
Ø certain thresholds of the Directive
The Commission is particularly keen to receive contributions on issues that are not included at this stage in the draft proposals, including:
Ø effectiveness of the prospectus summary
Ø disclosure requirements for offers with Government guarantee schemes
Ø disclosure requirements for small quoted companies and for rights issues
The proposal is presented in the context of the Action Programme for reducing administrative burdens in the European Union. In addition, Article 31 of the Prospectus Directive requires the European Commission to review the application of the Directive five years after its entry into force and to present proposals for its review
Deadline for comments is 10 March 2009.
Press release
Consultation document
Background document
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