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...