CESR report on supervisory functioning of Prospectus Directive and Regulation

13 June 2007

CESR published a report on the supervisory functioning of the Prospectus Directive and Regulation. The report assesses whether the new prospectus regime is achieving its objectives of protecting investors and lowering the cost of capital, and, in particular, whether it is contributing to the development of the single market for securities.

Market participants indicated that prospectuses are very burdensome documents to produce and very difficult to read. According to some respondents prospectuses have become extremely long documents with sometimes up to 1000 pages. They identified a number of areas where divergent practices of the different competent authorities posed some difficulties. Other provisions have been identified that are causing practical difficulties.

The Commission will review the Prospectus Directive in 2008.

Press release
Report

© CESR - Committee of European Securities Regulators