Lightening the load

Author: | Published: 9 Nov 2010

Issuers who passport securities from a country of the European Economic Area (EEA) into Germany or vice versa will profit from the improvements made to the revised Prospectus Directive both with regard to the country in which the prospectus is approved and the country into which the prospectus is passported.

The improvements will have a multiplying effect on cross-border issuances and respond well to the increasing need of issuers to find a wide investor base under current market conditions. Overall, the amendments to the Prospectus Directive appear to be in line with the 2007 statement of the European Council to reduce burdens on companies by 25% by the year 2012 in order to increase the competitiveness of the EEA.

Issuers will benefit from the removal of legal uncertainties and unjustified burdensome requirements. For example, one major improvement will be that there is no longer a danger that an issuer has...