In two letters to the European Commission and CESR the Financial Market Law Committee requested clarification on a number of uncertainties on the “offer to the public” of the prospectus directive.
In particular, there is some uncertainty as to whether certain pre-sales communications are caught by the definition of “offer of securities to the public”.
Also, with regard to listings, screen prices, etc., the FMLC asks the Commission to confirm its view that secondary market activity in securities that are already admitted to trading does not trigger the requirement for a prospectus and in particular that the publication of the prices at which securities can be treaded without more information, does not amount to an “offer of securities to the public”.
CESR will start an investigation in October when it considers questions relating to “retail cascades”.
Other issued the FMLC asks for further clarification are related to “on-sales by intermediaries” and retail cascades.
Letter to the Commission
Letter to CESR
© Graham Bishop
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article