Amid efforts to cut compliance costs and reduce regulatory burdens for issuers, the European Securities and Markets Authority (ESMA) is proposing revisions to its prospectus regulations and guidance that aim to simply the requirements.
In a series of publications, ESMA launched a consultation on proposed revisions to its guidelines on disclosure requirements, a report on regulatory standards for the financial information that must be included in a prospectus under the revised listing rules, and a report on guidelines for issuing new securities under a base prospectus.
The consultation paper seeks stakeholder input on proposed changes to simplify the existing guidance, along with updates that aim to help issuers and their advisors understand the regulators’ new disclosure expectations.
For instance, the proposed new guidance would eliminate certain disclosure requirements and addresses the ability for issuers to incorporate certain financial information “by reference”, which reduces duplicative disclosure.
Overall, the revisions are designed to reduce issuers’ compliance costs and to “make prospectuses more useful for investors,” the paper said.
Feedback the consultation is due by Nov. 9. ESMA plans to issue final guidance in the first quarter of 2027.