EU disclosure fatigue favours qualified investors

Author: Amélie Labbé | Published: 28 Sep 2017

The European Capital Markets Union (CMU) project aims to attract more retail investors to the financial markets by improving transparency and accessibility.

But the introduction of a qualified investor (QI) category as well as the revised Markets in Financial Instruments Directive (Mifid II) and the Packaged Retail and Insurance-based Investment Products (Priips) regulation restrict the exposure of 'less sophisticated’ investors to products that are deemed more complex.

Heightened disclosure requirements under the third Prospectus Directive (PDIII) mean the market is going in the direction of documentation overload. Coupled with increasing demands for more information for all investors under Priips, and tailored disclosure by type of investor as mandated by Mifid II, issuer documentation is now subject to greater scrutiny than before.

According to one panellist at IFLR’s EU Prospectus Regulation event on September 26, issuer prospectuses have become a...



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