PD level two to force multiple summaries, say issuers

Author: | Published: 18 Oct 2011

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 product lines.

Level two of the PD, released on October 4, sticks largely to the approach to final terms laid out in the consultation paper.

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...