Investment prospectuses to get new rules in EU

Out-Law News | 15 Aug 2002 | 12:00 am |

An EU proposal aims to make it easier and cheaper for companies to raise capital throughout the EU, while reinforcing protection for investors by guaranteeing that all prospectuses, wherever in the EU they are issued, provide them with the clear and comprehensive information they need to make investment decisions.

The European Commission this week presented its amended proposal for a Directive on prospectuses. A prospectus is a disclosure document, containing key financial and non-financial information, that a company makes available to potential investors when it is issuing securities to raise capital or when it wants its securities admitted to trading or exchange.

The amended proposal seeks to ensure that adequate and equivalent disclosure standards are in place in all Member States when securities are made available to all European investors either through a public offer or because they are admitted to trading.