Regulators’ preoccupation with protecting retail investors has damaged the wholesale bond market, according to panellists at IFLR’s EU Prospectus Rules Conference in London last week.
Among an array of other changes, the EU’s third iteration of its Prospectus Directive (PD3) removes the separate, lighter wholesale regime altogether – meaning every issuer on a regulated market must produce a prospectus.
At the moment, issuers selling over €100,000 worth of securities to institutional investors do not need to do this, which makes for a quicker and smoother process. But regulators are concerned this has resulted in too few securities available to retail investors.
The Irish Stock Exchange’s director of international primary markets Gerard Scully said that this...