Overview

In June 2010, a compromise proposal of the directive (Amending Directive) for amending the Prospectus Directive was published on the EU’s Consilium website.

The Amending Directive will alter the Prospectus Directive 2003/71/EC, which has been in force since 2004 and harmonised the requirements for drafting, approval and distribution of a prospectus in offerings and listings of securities within the European Economic Area (EEA).

The aim of the Amending Directive is to improve the status of the original Prospectus Directive by increasing legal certainty and reducing unnecessary burdensome administrative requirements. The number of prospectuses which are used for an offer of securities in more than one EEA country has constantly increased and is up to a total 4000 as of 2009. The success enjoyed by the Prospectus Directive which consolidated and created a single market within the EEA for financial services will continue and with the new changes the system will be even more attractive for the issuance of securities in other EEA countries as the changes are directed at making cumbersome scrutiny obsolete.