In August the European Commission presented an amended proposal for a prospectus directive that takes into account the comments of the European Parliament and the European Council on the original directive proposal of May 2001. The proposal aims to make it easier for companies to raise new capital, particularly in an international context, and ensure better safeguarding of investors. It is also designed to guarantee better functioning of the EU financial markets as a whole and to create common rules for public offers of securities as well as their listing.
At the core of the directive proposals are rules for a so-called ‘EU pass’ which would allow companies to issue and list new securities across Europe. It is planned that after approval of a company’s prospectus in one member state – usually in the issuer’s home country – the same prospectus will be valid for all public offerings and listings across the EU.
