EUROPE: ESMA Final Report on Draft Regulatory Technical Standards on Specific Situations that Require the Publication of a Supplement to the Prospectus

Thursday January 2 2014

The European Securities and Markets Authority (ESMA) has published draft regulatory technical standards on specific situations that require the publication of a supplement to the prospectus.

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending among others Directive 2003/71/EC requires ESMA to develop draft regulatory technical standards (RTS) to specify situations where a significant new factor, material mistake or inaccuracy relating to the information included in the prospectus requires a supplement to the prospectus to be published.

While developing the draft RTS, ESMA consulted stakeholders by way of a Consultation Paper. The final report includes a summary of the feedback from the public consultation and the proposed changes made by ESMA. To a large extent it follows the structure of the Consultation Paper with the first part dealing with general comments, issues unrelated to the subject at hand, matters concerning scope and the test to be performed in Article 16 (1) of the Prospectus Directive; and second part dealing with the list of specific situations which require a supplement to the prospectus.

The annexes of the final report consist of a revised cost-benefit analysis (Annex III), the revised draft RTS (Annex V) and legal references used in the final report (Annex VI). This final report has been submitted to the Commission as of 20 December 2013. The Commission has three months to decide whether to endorse ESMA’s draft RTS.

Click on the above link for the Report.