EU Prospectus Regulation finally to become fully effective
The bulk of the EU Prospectus Regulation (Regulation (EU) 2017/1129) will come into force on 21 July 2019. The most notable changes affect the rules on risk factors, prospectus summary, simplified prospectus (a prospectus with reduced disclosure requirements used for secondary issues by issuers that have been listed for at least 18 months on a regulated market) and growth prospectus (a standardised easy-to-use EU Growth Prospectus written in plain language and with reduced disclosure requirements for SME issuers). The new regulation aims to simplify the documentation by making it more practical and user-friendly, e.g. by including only those risk factors that are specific to issuers rather than generic risks. The summary should include only key, material and meaningful information for investors and up to 15 risk factors, with its length limited to seven pages of A4 paper.