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24 March 2011

ESMA establishes a framework for third country prospectuses and applies this new framework to facilitate Israeli issuers access

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The framework allows prospectuses from non-EU countries, drawn up in accordance with third country legislation, to have a ‘wrap’ added, so that the resulting document meets the requirements of the EU Directive.

The European Securities and Markets Authority (ESMA) has published a statement which sets out a framework, (ESMA/2011/36), on the way in which third country issuers in general, can meet the requirements of the PD.

ESMA’s Vice Chair, Carlos Tavares noted: “The important work to develop a framework for third country prospectuses highlights ESMA’s strong commitment to harmonised application of the Prospectus Directive in a consistent manner across Europe. It is widely recognised that deep liquid markets with greater investor choice can greatly benefit the global economy when implemented in a way that ensures investor confidence is maintained. We welcome the close co-operation we have had with the Israeli Securities Authority in understanding their prospectus requirements, and we are confident that the additional information provided will greatly benefit EU investors.”

ESMA also announces today in a Statement (ESMA/2011/37) that Israeli issuers may list their prospectus for shares on any EU regulated market, on the basis of a prospectus drawn up in accordance with Israeli regulation, with the addition of a ‘wrap’ which contains a number of supplementary disclosures. The new framework will ensure that Israeli prospectuses meet the requirements of the EU's Prospectus Directive (PD), enabling EU investors to continue to enjoy equivalent levels of protection in receiving similar information in considering offers from third country issuers.

The Chairman of the Israel Securities Authority, Prof. Zohar Goshen, added: "The Israeli market has today taken an important step forwards in facilitating the access to funding for Israeli firms in Europe. We continue to place great importance and value on the effective regulation and supervision of prospectuses as a key means of increasing investor confidence, and greatly welcome this development and the close dialogue we have had with ESMA which has ensured greater understanding of our regulatory regime.”

In order to facilitate listing in the EU and help Israeli issuers deal with the practicalities of entering EU markets, the ISA will seek to complete a series of bilateral MoUs with various EU national regulators, beyond the ones already completed.

Press release 


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