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On 21 July 2019, the new ‘Prospectus Regulation (EU) 2017/1129’ came into effect replacing the previous Prospectus Directive rules. PREU2017 is aimed at making Prospectuses shorter, clearer and more relevant, and new rules apply to the drafting and approval mechanisms for Prospectuses.

Publication and availability

  • Printed copies no longer need to be available at the issuer’s, regulator’s and/or intermediaries’ offices: the Prospectus is now deemed to be available to the public when posted on one or more of their websites

More focussed disclosure

  • The new regulation encourages greater focus on information ‘material’ to an investor to enable an informed assessment, alongside a requirement for ‘reasons for the issuance and its impact on the issuer’

The Prospectus Summary – new rules

The PREU contains new rules affecting both the form and content of the Summary:

  • Form: the summary must now be a maximum of seven (7) side of A4, split into four sections: introduction, issuer key information, securities key information, and offer key information;
  • Content: there’s a emphasis on presenting the summary in a clear, concise, accurate and ‘non-misleading’ manner, with a new question-style format and presenting a maximum of 15 of the most material risk factors

What is the cumulative effect of these changes and how can we help?

The new regulations are likely to put an increasing importance on the speed and precision with which Prospectuses are typeset and produced, so choosing the right vendor is critical. Clarity of presentation, new limits on the pagination of the Prospectus Summary, and speed to market via availability of the final ‘clean’ PDF on the appropriate websites all place a greater importance on your printer’s ability to provide a fast, accurate service and a well-designed and accessibly typeset Prospectus. Ensuring prompt production of blacklined, strikethrough and comparisons files during the process, and which are quickly produced and guaranteed Listing Authority-compliant, is also critical.

With the largest in-house typesetting team in Europe, working around the clock at our London EC2 offices; unrivalled experience on the largest and most complex Capital Markets & M&A projects; and as the only financial printer independently accredited as providing World Class Service by the Institute of Customer Service: Black&Callow is in a unique position to help you meet these regulations.

For more information about how we can help, please contact us on 020 3794 1720 or email london@blackandcallow.com

For more information about the new regulations please see: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017R1129