EuropeanIssuers' comments on Prospectus Directive

10 November 2011

In a letter to Barnier, EuropeanIssuers raised concerns that ESMA's technical advice on the Prospectus Directive will make raising equity and debt more difficult for issuers, rather than simplifying and making the process more efficient and effective, as intended in the amending Directive.

The main concerns are:

• there should not be “mini-prospectuses” under a base prospectus regime;
• there should not be a limitation of what can be inserted in final terms;
• there should not be summaries for each individual issue under a base prospectus;
• there should not be a strict view on what can be inserted in a supplement;
• the exclusion of open offers from the proportionate disclosure regime;
• the lack of availability of the proportionate disclosure regime for IPOs or admission to regulated markets;
• the lack of substantial cost saving with the proportionate prospectus regime.

Full letter

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