EMAC vote on Prospectuses

12 June 2003

Parliaments Economic and Monetary Affairs Committee voted on Christopher Huhne’s recommendation for second reading on the Prospectuses Directive, posing more than 50 amendments to the Council’s Common Position.

Among others, with regard to Article 1 the threshold of non-equity securities issued in a continuous or repeated manner by credit institutions of € 50m has now been doubled to € 100m. in order to avoid a competitive drawback for small and medium sized credit institutions

Article 2.1.(m) of the Common Position provided a threshold whereby choice of competent authority is contemplated only for non-equity securities whose denomination per unit is at least € 5 000. The amended text now proposes a threshold of only € 1 000 ‘or a similar amount customarily used as the minimum denomination per unit in non-equity issuance of other currencies that are widely used in international finance’

Recommendation Second reading

© Graham Bishop