Prospectus Directive moves to 'Trialogue'

The European Parliament’s Economic and Monetary Affairs Committee has now voted on its proposed amendments for the Prospectus Directive.  It has included an amendment on raising the threshold under which a prospectus does not need to be produced from €2.5 million to €5 million, which the QCA has been pushing for throughout this entire review.  There is also a proposal to increase the investor limit under which a prospectus does not need to be produced from 100 to 250 persons, which is a measure the London Stock Exchange has been lobbying on.  Both of these amendments, if passed, would help smaller quoted companies on regulated and exchange-regulated markets to raise capital more cost-effectively.  The Prospectus Directive has now moved into ‘Trialogue’, which is a debate between the European Commission, the European Parliament’s Economic and Monetary Affairs Committee and the Swedish Presidency Working Party, all of whom will be bringing their versions and amendments to the table for final agreement on what should be included in the final version of the legislation that is due to be voted on in the Parliament. We will keep you updated on its progress.