On 16 May 2017, the European Council adopted new rules on prospectuses for the issuing and offering of securities.
The new rules are aimed at lowering one of the main regulatory hurdles that companies face when issuing equity and debt securities. Replacing directive 2003/71/EC, they set out to simplify administrative obligations related to the publication of prospectuses but in a manner that still ensures that investors are well informed.
“This regulation is another element contributing to the improvement of the business environment, so important for realising a capital markets union in Europe”, said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency. “It will help enable a strengthened role for market-based finance, alongside bank finance, in the funding of European companies.”
The regulation was adopted at a meeting of the General Affairs Council, without discussion.
The European Parliament approved the text on 5 April 2017, following an agreement between Council and Parliament representatives on 7 December 2016.
Most provisions will apply 24 months after entry into force.