18 July 2008

Commission to postpone Communication on Private Placement

The Commission consultation and analysis provided no conclusive evidence on a number of issues regarding the appropriate limits of such a regime and, therefore, proposes investigation and research on the important unanswered questions.

The Commission issued an interim report on the impact assessment on the private placement regime. The report concludes that further work is needed to measure the overall costs and benefits of introducing EU level arrangements and to determine the appropriate scope of such potential arrangements.

 

The consultation exercise and analysis undertaken to date suggests that there is a reasonable prima facie case to be made in favour of measures to provide for a common approach to cross-border private placement, the report concludes.

 

However, the consultation and analysis provided no conclusive evidence on a number of issues regarding the appropriate limits of such a regime, including fundamental points such as product coverage, and assessing the implications of using alternative definitions of eligible buy- and sell-side.

 

Another area where further assessment and attention will be needed is the articulation of any new EU-level provisions that will fit with existing EU law.

 

The Commission, therefore, proposes to postpone the envisaged Communication on private placement, pending further investigation and research on the important unanswered questions.

 

Impact assessment - summary

Impact assessment – full version

© European Commission