ESMA publishes updated Q&As on the Prospectus Directive

28 October 2013

The updated Q&As on the Prospectus Directive revise a number of current market practices and address a number of new issues related to the implementation of the PD.

The purpose of the Q&A is to provide responses to questions posed by the general public and competent authorities in relation to the practical application and proper implementation of the PD. This in turn promotes common supervisory approaches and practices in the application of the PD and its implementing measures across the 28 Member States.

The Q&A also includes revisions of two previous Questions, which deal with:

• pro forma financial information; and
• the level of disclosure concerning price information for share offerings.

As these revised questions set out changes to current market practices, ESMA has decided to provide a phase-in period of three months from the publication of this document for their application. This will provide market participants sufficient time to adjust to the new approaches.

New Questions

The updated Q&A addresses a number of new issues under the PD, specifically:

• the agreement of the auditor (in relation to profit estimates);
• the proportionate disclosure regime for prospectuses for rights issues; and
• the proportionate disclosure regime for rights issues and admission to trading.

Press release

Full Q&A

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