United Kingdom

Author: | Published: 1 Jul 2005

As home to Europe's largest capital markets, market participants are looking closely at how the UK is implementing the Directive. Matthew Hartley, Ryan Barrow and Eleanor Ley explain the changes for issuers

Directive 2003/71/EC (the PD) forms a significant part of the EU's Financial Services Action Plan, which aims to establish a single financial services market in Europe. As such, the PD aims to achieve maximum harmonization in the European Economic Area (EEA) for the requirements for the drawing up, scrutiny and distribution of prospectuses, to ensure investor protection and market efficiency against a background of high regulatory standards.

Under the new regime the general principle will be that all offers to the public or admissions to trading on a regulated market of securities will require a prospectus to be published unless a relevant exemption applies. In broad terms, these exemptions are similar to the current public...