Aggregated News From Investment Management Regulators

ESMA promotes consistent application of prospectus disclosure requirements

Report/Flag

Please complete the required fields.



The Guidelines provide guidance to financial market participants regarding the disclosure of financial and non-financial information in the prospectus. The aim of the Guidelines is to ensure that market participants have a uniform understanding of the relevant disclosure required in the various annexes included in the Commission Delegated Regulation (EU) 2019/980. The Guidelines will help those responsible for the prospectus to assess which disclosure is required and to promote consistency across the EU in how the annexes to the Delegated Regulation are applied.

The Guidelines aim to support competent authorities in properly assessing the completeness, comprehensibility and consistency of information in prospectuses.

Steven Maijoor, Chair, said:

“These Guidelines are essential to facilitating a clear and consistent EU wide understanding of some of the more detailed and complex disclosure requirements in the prospectus sphere. They are key for both financial market participants and national competent authorities, and their publication will contribute to consistency and convergence in the prospectus area and ultimately investor protection.”

The Guidelines cover a variety of financial and non-financial topics, including:

  • Pro Forma information;
  • Working capital statements;
  • Capitalisation and indebtedness;
  • Profit forecasts and estimates;
  • Historical financial information;
  • Operating and financial review;
  • Options agreements; and
  • Collective investment undertakings.

Key Issues

The Guidelines clarify ESMA’s expectations on the key areas of working capital statements and pro forma information. In relation to working capital statements, new guidance on how offerings should be considered when determining if an issuer can provide a clean working capital statement is provided. Regarding Pro Forma information, ESMA maintained its position in relation to the aggregation of several transactions for the purposes of Pro Forma information. The aggregation principle, introduced in the July 2019 Consultation Paper, is considered an important policy change from an investor protection perspective.

The completion of these Guidelines is ESMA’s latest output in a series of workstreams undertaken during the transition from the Prospectus Directive to the Prospectus Regulation. The full list of ESMA’s prospectus work is available here

Next steps

Once translated into all official languages of the EU, ESMA will focus on the consistent application of the Guidelines by national competent authorities.

Source link

Regulator Information

Abbreviation: ESMA
Jurisdiction: ESMA

Recent Articles

Directive for the beneficial ownership register of express trusts and similar legal arrangements

See the Press Release published by the Cyprus Securities and Exchange Commission (CySEC CY) here: Source link

RichmondSuper

Attention! The FMA warns investors against concluding transactions with: RichmondSuper https://www.richmondsuper.com (Link to external page. Opens in new window.) [email protected] [email protected] [email protected] [email protected] [email protected] (Link to external page. Opens in new window.) This provider...

Hardson Becker Global

Attention! The FMA warns investors against concluding transactions with: Hardson Becker Global with its registered address apparently in Hangzhou, China www.hardson.com This provider is not authorised to carry...

“Let’s talk about money” – money laundering: how illegal assets are given a legal appearance

In the latest edition of its consumer information series, “Let’s talk about money” the Austrian Financial Market Authority (FMA) explains about the term money...

Chair Powell will host town hall with educators August 2, 2021 at 4 p.m. EDT

Please enable JavaScript if it is disabled in your browser or access the information through the links provided below.

Get the latest from Regulatory.News in your inbox!

×