ESBG: Prospectus prep rules agreement welcomed

Savings, retail banks see agreement as big step towards forming Capital Markets Union












​​BRUSSELS, 4 January 2017 – ESBG has thrown support for elements of the Prospectus Regulation final text agreed 8 December in trialogue talks in Brussels between the European Parliament and European Council.

ESBG supports the regulation's objective of reducing the burden on issuers while safeguarding a high level of investor protection, an important step towards forming a Capital Markets Union. ESBG especially welcomes the aim of facilitating the approval process for frequent issuers.

​About the Prospectus Regulation draft text

The text contains the rules allowing companies to raise money on public markets or by means of a public offer with potential investors. The overhaul of the current directive aims at enabling investors to make better informed investment decisions, simplifying the rules for companies that wish to issue shares or debt and fostering cross-border investments in the Single Market.

​ESBG efforts to present its position

ESBG took part in the public debate by presenting savings and retail banks' points of view to policymakers with a particular focus on the form, notably the length, as well as content around the number of risk factors of the summary prospectus which unfortunately have not been completely taken on board. Other aspects that ESBG was advocating for have, however, been taken into account such as an increased threshold for offers to a limited number of natural or legal persons and a date of application further in the future to allow for a smooth implementation.

ESBG will accompany the drafting of the level 2 legislation, in particular through responding to future consultations. The association's aim through consultation responses is to provide its banking sector expertise when policymakers seek solutions for technical implementation of the new regulation.

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Proportionality; European Institutions; European Supervisory Authorities (EBA-ESMA); Regulation; Investments; Communication - institutional & commercial