Prospectus Rules (Regulation)
The Commission wants to reduce red tape with regard to the preparation of prospectuses which have to be published when securities are offered to the public or admitted to trading. This will give companies easier access to the capital markets. In cep's view, however, the proposal will result in distortions of competition and legal uncertainty.
Aligning the prospectus summary with the key information document under the PRIIPs Regulation enhances the comparability of the various securities investments. The planned exemptions from the prospectus obligation, however, cause distortions of competition. This also applies to the proposed entitlement for Member States to exempt domestic issuances of up to € 10 million from the prospectus obligation. Strictly limiting the prospectus summary creates liability risks for issuers and gives false incentives to investors.