The European Commission says that its upcoming Prospectus Directive will be key to achieving its aim of creating a single European financial services market, making it 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, on concerns about its potential impact on smaller companies. Some of these concerns were addressed as the Directive made its way through the European legislative process, but not all critics have been silenced.
