ESMA has published a Q&A to provide guidance on the conditions for the consent to use a prospectus in retail cascades to apply until such time when, pending European Parliament’s approval, the requirements of the Commission Delegated Regulation (COM DR) dealing with this issue come into force. The COM DR is currently subject to the objection period of the European Parliament and it is not expected to enter into force until mid-September at the earliest.
The Prospectus Directive 2003/71/EC as amended by Directive 2010/73/EU entered into force on 1 July 2012 and addresses the practice of retail cascades in article 3 (2) subparagraph 3. It requires that the issuer provides their consent to the use of the prospectus in a retail cascade by means of a written agreement. The COM DR will provide the conditions and information requirements to apply this regime. In order to promote a consistent application across the Member States of these requirements, ESMA recommends that prospectuses who grant their use in retail cascades apply the requirements of COM DR from the time of communication of this Q&A.
ESMA is publishing this Q&A in order to provide guidance to issuers and persons drawing up prospectuses on their behaviour in the period between 1 July 2012 and the entry into force of the COM DR, and is not aimed at pre-empting the decision of the European Parliament.
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ESMA Publishes An Update To The Q&A In The Area Of Prospectuses
Date 23/07/2012