ESMA Publishes An Opinion On The Framework For The Assessment Of Third Country Prospectuses And An Update To The CESR Recommendations On The PD

This opinion explains a framework for third country share prospectuses under Article 20 and sets out the role of the EU Member States’ competent authorities in scrutinising prospectuses under these arrangements.

Following consultation CESR/10-411, ESMA has decided to reissue CESR’s recommendations for the consistent implementation of the European Commission’s Regulation on Prospectuses nº 809/2004 (CESR/05-054b) published in January 2005 with an update of paragraphs 131-133 of the recommenda-tions included in the previous document published in January 2005 (CESR/05-054b), and the inclusion of annexes I, II and III.

The recommendations have not, however, been adopted as recommendations under Article 16 of the ESMA Regulation and therefore the ‘comply or explain’ mechanism established under that Article does not apply.