The European Securities and Markets Authority's (Esma)
Prospectus Directive consultation raises several major concerns
in its treatment of final terms and summaries, according to the
International Capital Market Association (ICMA).
The paper, released on June 15, is seeking comments on the
technical advice it proposes to give the EC on delegated acts.
Esma is seeking comments until July 15.
Much attention has centred on final terms. The consultation
has requested a fully completed summary for the individual
issue merged into the final terms. "I find this slightly
worrying," said one source.
As it stands, often significant pieces of information appear
in final terms which are not viewed by regulators. For
instance, the formula for redemptions on structured products
has, until now, often been included in final terms. "In terms
of making documentation short and simple that is probably the
easiest way to do it," said Ruari Ewing, director of