ESMA consults on regulatory technical standards under new Prospectus Regulation

The European Securities and Markets Authority has published a consultation on its proposed regulatory technical standards under the new Prospectus Regulation. In some respects it proposes to preserve existing rules but with a number of changes to fit in with the new regime.

The draft RTS cover (among other things):

• key financial information for the prospectus summary – the RTS contain six templates setting out the disclosure requirements for different types of issuers and securities. They also cover how to include pro forma financial information and complex financial history;
• advertisements – generally the current requirements will be copied across to the new regime, although there will be certain new requirements, for example advertisements must contain a hyperlink to the prospectus (if published) or clearly mention the website where the prospectus will be found, once it has been published;
• supplementary prospectuses – certain of the current rules will be preserved with some changes to tie in with ESMA’s proposed technical advice on the format and contents of the prospectus. For example, the publication of a profit forecast or estimate after the approval of the prospectus, but before the close of the offer or the date of admission should trigger the publication of a supplementary prospectus;
• Publication – where necessary the current rules will be replicated in the new regime, with a number of changes, such as relaxing the restriction on hyperlinks in a prospectus.
The consultation closes on 9 March 2018.