30 January 2003

FESE Comments on CESR’s Advice on Implementing Measures the Prospectus Directive

The Federation of European Securities Exchanges (FESE) is surprised about the level of detail which CESR has applied to its response and is concerned about the rigidity and inflexibility should the Commission fully embark on CESR’s proposals for the Level II implementing measures.

FESE is also concerned that with such a type of regulatory measure, issuers will very much focus on the actual wording and form of requirements. Furthermore, the “maximum harmonisation” approach of the Directive, is being misused when it results in little more than a compilation of the most detailed rules available across Europe on each of the subjects.

In FESEs view, CESR’s proposals reflect a surprising lack of self-confidence within the regulators’ community (i.e. CESR) in the self-regulatory powers of CESR. The Members of FESE feel that the efforts to eliminate competition between regulatory environments (“regulatory competition”) overshoot and stifle their own legitimate competitive interest.

Finally, the Prospectus Directive and its Level II implementing measures should not contain too many building blocks for “specialist issuers”. National competent authorities can judge better what content and legal form of disclosure is necessary in their country to protect investors.

FESE comments on CESR’s advice

© FESE