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Perspective on prospectus rules

The updated EU-wide Prospectus Regulation came into force in July 2019. How many of the rules the UK retains post-Brexit, however, remains to be seen. Christine Phillips outlines the key changes writing for the Corporate Finance Faculty.

The Prospectus Directive has set out a single regime to govern the content, format, approval and publication of prospectuses throughout the EU since 2004. These legislative and regulatory measures were repealed and replaced by  the new directly applicable Prospectus Regulation, which came into force in July 2017. Its provisions have been applied on a staggered basis with further features in July 2018 and the remaining provisions coming into force in July 2019. The new Prospectus Regulation seeks to alleviate the administrative burden associated with producing a prospectus and to enhance the value of the prospectus as an informative tool for investors. The changes are directed at smaller growing companies as well as issuers who seek to access capital markets frequently, and seek to provide tailored disclosure requirements for different issuers.

About the article

Read the full article in the Corporate Financier October 2019 edition. Access this magazine as well as our extensive archive brought to you by the ICAEW Corporate Finance Faculty.