The European Commission says that the Prospectus Directive will be key to achieving its aim of creating a single European financial services market, making it is easier and cheaper for companies to raise finance on a pan-European basis. The new rules, expected to be published in November this year and implemented in May 2005, are intended to create a ‘single passport’ for companies making a public offer in the European Union (EU), or seeking admission to trading on a European stock exchange. But will they succeed where previous initiatives have failed?
The Directive received a hostile reception when it was first published in May 2001. Criticism focused on the ‘one size fits all’ approach and in particular concerns about the impact on smaller companies.
