Publication Prospectus Regulation
On 30 November 2015, the European Commission published a proposal for the new Prospectus Regulation to replace the existing Prospectus Directive (2003/71/EC). The proposed Prospectus Regulation is part of the European Commission’s plan to establish a Capital Markets Union. According to the speech of the Commissioner for Capital Markets Union – Jonathan Hill – the proposed Prospectus Regulation “will make prospectuses simpler, faster and cheaper to produce”.
The key changes introduced by the proposed Prospectus Regulation are as follows:
• Less burdensome prospectus rules for small and medium sized enterprises;
• The exemption threshold for small capital raisings will be higher;
• Secondary issuances for listed companies will be easier;
• Reduction of the prospectus summary to no more than six A4 pages;
• Faster prospectus approvals for frequent issuers.