Today the draft regulation on the increase of the exemption limit for the prospectus requirement (only available in Dutch) has been published for consultation to the market. The draft regulation increases the exemption limit of the prospectus requirement from EUR 2,5 million to EUR 5 million. If an issuer wishes to make use of the EUR 5 million exemption, this intention must be notified to the AFM in advance. This notification must include certain information, such as the maximum size of the intended issuance in euro’s, the offer period, the category of the securities that will be offered, etc.

The draft regulation also contains certain minimum information requirements regarding the information provided to potential investors for users of the EUR 5 million exemption. Appendix A contains a standard information document to be completed by the issuer. The appendix contains minimum investor information requirements and is based on the requirements set by the Dutch Unfair Commercial Practices Act (Wet oneerlijke handelspraktijken).

You can react to the consultation until 12 July 2017. It is not clear yet when the draft regulation will enter into force.