The European Securities and Markets Authority
(Esma)’s technical advice for level two of the
Prospectus Directive (PD) will effectively force issuers to
have to redo their summaries each time they issue, according to
an issuers’ group.
It may lead to the fragmenting of programmes along
Level two of the PD, released on October 4, sticks
largely to the approach to final terms laid out in the
The concept of the drawdown summary - a base
prospectus summary completed with details of the relevant
securities issuance and attached to the final terms - survived,
while a summary of the base prospectus is still required to be
annexed to the relevant final terms.
Martin O’Donovan, deputy policy and technical
director at The Association of Corporate Treasurers, said from
an issuers’ perspective the annexing of the
summary in the final terms is unhelpful: it means they will
have to review...