Consultation on implementing EU prospectus directive

HM Treasury today published a consultation document on proposals for UK implementation of the EU Prospectus Directive .

Financial Secretary Stephen Timms said:

“We welcome the Directive aims of improving market efficiency by enabling companies to gain access to regulated financial markets across the EU through the production of a single approved prospectus with high standards of disclosure to protect investors.

“Given the important consequences the proposals will have for companies seeking to raise equity capital it is important that all interested parties engage in the consultation process. We look forward to hearing their views.”

The Directive requires that a prospectus is produced whenever there is a public offer of securities or where securities are admitted to trading on a regulated market. The Directive specifies the content of prospectuses and requires them to be approved by the relevant competent authority.

This consultation seeks comments on the proposed changes to legislation. Comments on the proposals generally or any particular aspect of them would be welcomed.

The closing date for responses to the consultation is 28 January 2005.

Notes for editors

1. On 4 November 2003 the European Parliament and Council of the European Union adopted Directive 2001/71/EC on the prospectuses to be published when securities are offered to the public or admitted to trading on a regulated market (the Prospectus Directive). The Directive came into force on 31 December 2004 and Member States are required to implement the Directive into national law by 1 July 2005.

2. The Commission proposed the Prospectus Directive as part of the Financial Services Action Plan (FSAP). The FSAP is the legislative framework for developing the Single Market in financial services. Between its endorsement by the European Council in March 2000 and the end of April 2004, 38 out of 42 measures in the FSAP have been adopted in the EU. The FSAP may be found on the Treasury website.

3. The Treasury invites comments on the consultation document. Responses to the consultation should be sent to:

Simon Cubley
Capital Markets and Governance
1 Horse Guards Road
London
SW1A 2HQ
Email: simon.cubley@hm-treasury.x.gsi.gov.uk

4. Media enquiries should be addressed to Charles Keseru at the Treasury press office on 020 7270 5188.

5. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk.

5. This press release and other Treasury publications and information are available on the Treasury website at www.hm-treasury.gov.uk. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website.