EUROPE: ESMA Updates its Q&As Relating to the Prospectus Regulation

Wednesday February 26 2020

On 18^th February 2020, the European Securities and Markets Authority (ESMA) updated its Questions and Answers on the Prospectus Regulation with two new Q&As.

The two Q&As provide clarification on the following issues in relation to the Prospectus Regulation:

• The number of additional pages that can be included in a summary where there is more than one guarantor.
• The number of additional pages that can be included in a summary relating to several securities, as per Article 7(7) of the PR.

Q13.3 How many additional pages can be included in a summary relating to several securities, as per Article 7(7) of the PR?

A13.3 ESMA understands that the fourth subparagraph of Article 7(7) of the PR stipulates that the maximum length of the summary should only be increased by ‘[..] two additional sides of A4-sized paper’, our understanding is that the page limit may only extend to a maximum of nine sides of A4-sized paper.

In addition, ESMA notes that Article 7(7) also refers to a situation involving the use of a key information document (KID). In such case, the length of the summary can be extended by three pages for each additional security.

Q13.4 How many additional pages can be included in a summary where there is more than one guarantor?

A13.4 As Article 7(7)(c) of the PR refers to ‘a guarantee’ in the singular form, the text in the final subparagraph of Article 7(7) means the summary may be extended by only one additional side of A4-sized paper per guarantor. Accordingly, if there are multiple guarantors, one additional page could be added per guarantor.

Click on the above link for further information.