The Netherlands

Author: | Published: 1 Jul 2005

The Netherlands had to implement emergency legislation to avoid missing the July 1 implementation date. Erwin Schreuder and Ella van Kranenburg explain what this means for issuers

The implementation of the Prospectus Directive (PD) in The Netherlands was initially planned to form part of the new omnibus Financial Supervision Act, which would consolidate in a single act most Dutch financial regulatory laws. Once this project began suffering delays, it was feared that the July 1 2005 deadline for PD implementation might be missed. Consequently, the Dutch Ministry of Finance decided to effect implementation by submitting an emergency bill to amend the general Securities Markets Supervision Act 1995 (SMSA). The Netherlands met the July 1 2005 deadline after the cabinet put intense pressure on parliament.

On enactment of the bill, offerings of securities that are not PD-compliant securities would in principle still be subject to the SMSA's existing prospectus requirement,...