The amendment of the Prospectus Directive is part of a simplification programme by the Commission to cut administrative burdens. Against this background, the Commission wants to make it easier to issue securities in the EU. Also, it aims at increasing legal certainty and lowering costs.
The focus on the prospectus’ summary and the intended liability for “key information” creates legal uncertainty. It is impossible to summarise all “relevant aspects” of highly complex financial products on a few pages only. Some of the intended simplifications may distort competition. The remaining proposals made by the Commission lower legal uncertainty and reduce the costs for issuing securities