Guidance for issuers and supervisory authorities on the application of the Prospectus Directive
The European Securities and Markets Authority (ESMA) has published an updated version of its “Frequently Asked Questions: Prospectuses: Common positions agreed by ESMA Members” (the FAQs). This 13th version of the FAQs can be read here.
The Prospectus Directive (the PD) sets out the content and format requirements for the prospectus that a company has to produce when its securities are admitted to a listing on a regulated market or offered to the public in an EU member state. The purpose of the FAQs is to “promote common supervisory approaches and practices in the application of the PD and its implementing measures”. The FAQs, which contain answers agreed by European securities regulators to 76 questions, are also meant “to give market participants an indication of what constitutes proper implementation of the PD rules [and] are intended to help issuers of securities by providing clarity as to the content of the PD requirements”.
ESMA is an independent EU Authority that describes itself as “safeguarding the stability of the European Union’s financial system by ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection”. It is the successor body to CESR, the Committee of European Securities Regulators, and became operational on 1 January 2011. The ESMA website is here and a guide to ESMA is here.
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