48/99
11 March 1999
PUBLIC OFFERS OF SECURITIES REGULATIONS
Amendments to the Public Offers of Securities Regulations 1995 ('POS Regulations') have been laid before Parliament. Associated repeals of securities provisions of the Companies Act 1985 were announced.
Economic Secretary, Patricia Hewitt, said:
"The changes to securities regulations will improve the framework for offering securities in the UK, and assist companies - particularly smaller companies - raising capital or operating employee share schemes. By better implementation of the Prospectus Directive, they will also facilitate cross-border offers of securities into the UK from elsewhere within the European Economic Area. This is part of the follow-up to our initiative on cross-border offers of securities during the UK Presidency of the EU."
The Amendment Regulations were laid before Parliament on 10 March. They will come into force on May 10. The Companies Act repeals will become effective on the same day.
NOTES TO EDITORS
1. A Treasury consultation document "Public Offers of Securities" was published on 20 August 1998 (HMT Press Release 140/98). 2. The POS Regulations set out the circumstances in which offers of securities in the UK require the preparation of a prospectus and implement in UK law the requirements of the European Prospectus Directive (EEC 89/298). A prospectus is a formal offer document setting out details of securities offered and the company (or other body) issuing them. A prospectus must be prepared whenever securities are offered to the public.