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Contents
- Preliminary Material
- Main Text
- Part I General Aspects
- 1 Introduction
- 2 The IPO Process, IPO Disclosure, and the Prospectus Regulation
- Preliminary Material
- I Introduction
- II Key IPO Considerations
- III The IPO Prospectus
- IV IPO Prospectuses and the Prospectus Regulation
- V Concluding Remarks
- 3 Stabilization and Underpricing in IPOs
- Preliminary Material
- I Introduction
- II The Economics of IPOs
- III The US Regulatory Regime
- IV The European Regulatory Regime
- 1 Insider Trading and Market Manipulation
- 2 The Notion and the Purpose of Stabilization
- 3 The Notion of Ancillary Stabilization
- 4 The Notion of Overallotment Facility and of Allotment
- 5 The Notion of Greenshoe Option
- 6 The Substantive Rules for Stabilization: The Stabilization Period
- 7 The Substantive Rules for Stabilization: The Price Conditions
- 8 The Substantive Rules for Ancillary Stabilization
- 9 The Disclosure Regime for Stabilization
- 10 Insider Trading and Stabilization
- V Conclusion
- 4 The Prospectus Regulation and Other EU Legislation: The Wider Context for Prospectuses
- Preliminary Material
- I Introduction
- II References in the Prospectus Regulation to Other EU Laws and their Legal Implications
- III Contents of Prospectuses beyond the Prospectus Regulation
- 4.31
- 1 MiFID II and MiFIR
- 2 Transparency on Financial Reporting and Alternative Performance Measures (APMs)
- 3 The Market Abuse Regulation
- 4 The Benchmarks Regulation
- 5 The Credit Rating Agencies Regulation
- 6 The Securitization Regulation
- 7 The Take-over Bid Directive
- 8 Prospectuses for Financial Sector Issuers
- IV Prospectuses in the Context of Brexit Legislation
- V Conclusion
- 5 The Disclosure Paradigm: Conventional Understandings and Modern Divergences
- Preliminary Material
- I Introduction
- II The Disclosure Paradigm: Conventional Understandings
- III The Impact of Financial Innovation on Conventional Understandings
- 1 Complexity and the Need for a Portfolio of Modes of Information
- (i) The limitations of the descriptive mode
- (ii) The ‘transfer mode’, the ‘hybrid mode’, and the portfolio approach to information
- (iii) Asset-backed securities and pure information: loan-level data and downloadable waterfall codes
- (iv) Alternative data: the portfolio approach and original third-party company-specific information
- 2 The Exchange-Traded Fund: A Traded Security without Disclosure’s Heart and Soul
- 3 Decoupling and New Extra-Company Informational Asymmetries
- 1 Complexity and the Need for a Portfolio of Modes of Information
- IV The Regulatory Ends of Disclosure and the Emergence of a Parallel Disclosure Universe
- V Conclusion
- Part II The New EU Prospectus Rules
- 6 Transferable Securities and the Scope of the Prospectus Regulation: The Case of ICOs
- 7 The Obligation to Publish a Prospectus and Exemptions
- Preliminary Material
- I Introduction
- II Trigger No. 1: An Offer of Securities to the Public
- III Trigger No. 2: An Admittance to Trading on a Regulated Market
- IV The Geographical Demarcation
- V Exemptions to the Obligation to Publish a Prospectus—General Comments
- VI Exemption Type No. 1: The Type of Security
- VII Exemption Type No. 2: Small Offerings
- VIII Exemption Type No. 3: Exemptions Specific to an Offer to the Public
- IX Exemption Type No. 4: Exemptions Specific to an Admittance to Trading on a Regulated Market
- X Combination of Exemptions
- XI A Voluntary Prospectus
- XII The Prospectus Requirement for Investment Institutions (as a Special Type of Issuer)
- XIII Subsequent Resale if an Exemption Has Been Used
- XIV Conclusion
- 8 The Contents of the Prospectus: Rules for Financial Information
- Preliminary Material
- I Introduction
- II The Legal Background: Prospectus Regulation, Delegated Regulation, ESMA Recommendations, and Q&A
- III Historical Financial Information
- 1 Annual and Interim Financial Reports to be Included in the Prospectus
- 2 Accounting Standards
- 3 The Change of Accounting Framework and the Impact of IAS 8 on Historical Financial Information
- 4 Incorporation by Reference
- 5 The Alignment of the Operating and Financial Review Requirement with the Management Reports Required under the Accounting Directive
- 6 The Removal of the Requirement for Issuers of Equity and Retail Non-Equity to Include Selected Financial Information in the Prospectus
- IV Pro Forma Financial Information
- V Profit Forecasts and Profit Estimates
- VI Conclusions
- 9 The Contents of the Prospectus: Non-Financial Information and Materiality
- Preliminary Material
- I Introduction
- II Principal Rule
- III Objective versus Subjective Materiality
- IV The Scope of Article 6(1), Prospectus Regulation
- V The Materiality Test Generally
- VI Materiality in the Context of Prospectus Liability
- VII ‘Materiality’ not Defined in the Prospectus Regulation or in Delegated Regulations
- VIII The Average Investor
- IX Materiality in the Context of the Prospectus Summary
- X Materiality in Relation to Risk Factors
- XI Materiality Thresholds as Applied by External Auditors
- XII Materiality as a Concept in Various Jurisdictions: A High-Level Overview
- XIII Accommodating Funding Needs
- XIV Possibilities for Omitting Sensitive Information
- XV Exculpations
- XVI Applicable Law and Jurisdiction
- XVII Concluding Remarks
- 10 ‘Light’ Disclosure Regimes: The EU Growth Prospectus
- 11 ‘Light’ Disclosure Regimes: Secondary Issuances
- Preliminary Material
- I Introduction
- II Background
- III The Case for a Light Disclosure Regime for Secondary Offerings or Listings
- IV Scope
- V Content—What Information is not Specifically Prescribed?
- VI Conclusion: Use in Practice?
- 12 The Summary and Risk Factors
- Preliminary Material
- I Introduction
- II Purpose of the Summary and Risk Factors
- III The Summary and Risk Factors in the Single-Document Prospectus
- IV The Summary and Risk Factors in Other Prospectus Types
- V Competent Authority’s Discretionary Powers
- VI Responsibility for the Summary
- VII Use of Language
- VIII Conclusion
- 13 Prospectus Formats and Shelf Registration
- Preliminary Material
- I Introduction
- II New Regulation and Delegated Acts
- III Prospectus Formats and their Use in Practice
- IV New Prospectus Formats
- 13.18
- 1 Simplified Prospectus for Secondary Issuances
- 2 Introduction of the EU Growth Prospectus
- 3 The New Universal Registration Document (URD)
- V Discussion of URD and Simplified Prospectus
- VI US Shelf Registration
- VII Conclusion
- 14 The New Advertisement RegimeWhat a Difference a Word Makes?
- Preliminary Material
- I Introduction
- II Background
- III The Prospectus Regulation
- IV The Delegated Regulation
- 14.21
- 14.22
- 1 Identification of (and Reference to) the Prospectus in any Advertisement
- 2 Specific Content to be Included in any Advertisement (Retail Only)
- 3 Requirements as to Amendments to Advertisements in Case a Supplement is Published
- 4 General Requirement to Align Information Concerning Offers of Securities
- V Supervision of the Advertisement Regime—Risk of Conflicting Views of Authorities?
- VI No Grandfathering
- VII Conclusion
- 15 Omission of Information, Incorporation by Reference, Publication, and Language of the Prospectus
- Preliminary Material
- I Review of the Prospectus Directive and the Purpose of the Prospectus Regulation
- II The Scope of the Prospectus and Different Types of ‘Omission’ of Material Information Allowed
- III Incorporation by Reference
- 1 Incorporation by Reference under the Prospectus Directive: Prevalence of the Prospectus Directive Principles of Completeness, Accessibility, and Comprehensibility
- 2 Making the Incorporation by Reference Mechanism More Flexible and Assessing the Need for Supplements in Case of Parallel Disclosure of Inside Information
- 3 Incorporation by Reference under Article 19, Prospectus Regulation
- 4 Incorporation by Reference and ‘Draw-Down’ Prospectus
- IV Omission of Information
- V Publication of the Prospectus (Art. 21, NPR)
- VI Language (Art. 27, NPR)
- 16 The Approval of Prospectus: Competent Authorities, Notifications, and Sanctions
- Preliminary Material
- I Introduction
- II Prospectus Approval and the Role of National Competent Authorities
- III Geographical Validity of Prospectus
- IV Linguistic Regime
- V Sanctioning Regime
- VI Remaining Spaces for Arbitrage in the Prospectus Regime
- VII Identifying the National Competent Authority
- VIII A Focus on Equity Securities
- IX Competition versus Centralization: A Trade-Off?
- X Conclusion
- 17 The Prospectus Regime and Brexit
- Preliminary Material
- I Introduction
- II Brexit and Listing—The UK Position
- III How Will Transition Work?
- IV Enacting Transition
- V Listing Documents and Prospectuses
- VI When is a Prospectus Required?
- VII A Security
- VIII Public Offer
- IX Listing Particulars
- X Home Member State
- XI Reoffers and Cascades
- XII Offer Document Content
- XIII Language
- XIV Conclusion
- Part III Prospectus Liability and Litigation
- 18 The Influence of the EU Prospectus Rules on Private Law
- Preliminary Material
- I Introduction
- II Prospectus Regulation and Civil Liability
- 1 Liability of the Persons Responsible for the Prospectus
- (i) General
- (ii) Does responsibility rest with the issuer or with the administrative, supervisory, or management body?
- (iii) Offeror of the securities
- (iv) Person asking for admission to trading on a regulated market
- (v) Guarantor
- (vi) Minimum harmonization
- (vii) Provisions of national law governing civil liability
- 2 Liability for the Summary
- 1 Liability of the Persons Responsible for the Prospectus
- III Information Obligations under the EU Prospectus Rules
- IV Unlawfulness and Imputability
- 1 May Civil Courts be More Flexible than the EU Prospectus Rules?
- 2 May Civil Courts be Stricter than the EU Prospectus Rules?
- (i) Immofinanz and Genil v Bankinter
- (ii) Nationale-Nederlanden v Van Leeuwen
- (iii) Consequences of Nationale-Nederlanden v Van Leeuwen
- (iv) Article 6(1), Prospectus Regulation and Delegated Regulation (EU) 2019/980
- (v) The operation of the prospectus as a European passport
- (vi) Example 1
- (vii) Example 2
- (viii) Securities not covered by the Annexes to Delegated Regulation (EU) 2019/980
- (ix) Investor protection and a European capital market
- (x) Differentiation between retail and wholesale investors?
- (xi) Use of language
- (xii) Inclusion of non-material information
- V The Influence of the EU Prospectus Rules on the Relativity Requirement
- VI The Influence of the EU Prospectus Rules on the Proof of Causal Link
- VII The Influence of the EU Prospectus Rules on Determination of the Extent of the Loss or Damage
- VIII The Influence of the EU Prospectus Rules on a Limitation or Exclusion of Liability
- IX Assessment by National Courts of their own Motion of Compliance with the EU Prospectus Rules in Cases Involving Private Investors
- X The EU Prospectus Rules and Liability of Financial Regulators
- XI Conclusion
- 19 Prospectus Liability: Competent Courts of Jurisdiction and Applicable Law
- Preliminary Material
- I Why do Jurisdiction and Applicable Law Matter? An Introduction
- II The Default Jurisdictional Regime for Prospectus Liability
- III The Default Regime on Applicable Law for Prospectus Liability
- IV Taking Stock of Default Rules: A System in Need of Reform
- V Deviating from Default Rules: The Issuer Choice Regime
- VI Conclusion
- 20 Germany
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- 20.12
- 1 Persons Assuming Responsibility for a Defective Prospectus (Section 21, Subs. 1, Sent. 1, No. 1, Securities Prospectus Act)
- 2 Persons Initiating the Issuance of the Defective Prospectus (Section 21, Subs. 1, Sent. 1, No. 2, Securities Prospectus Act)
- 3 Failure to Publish a Prospectus
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- 20.46
- 1 Causation
- 2 Damages
- 3 Absence of Causation
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- XIV Annex—Sections 21–5, German Securities Prospectus Act (Wertpapierprospektgestz—WpPG)
- 21 France
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 22 Italy
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 23 Spain
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- 1 The Issuer of the Securities
- 2 The Seller of the Securities
- 3 The Person Seeking Admission to Listing of the Securities
- 4 The Directors of the Issuer, the Seller of the Securities, or the Person Seeking Admission to Listing
- 5 The Guarantor of the Securities
- 6 The Lead Managers of the Placement of the Securities
- 7 The Persons Accepting Liability on the Prospectus or any Portion Thereof
- 8 The Persons Who Have Authorized the Prospectus
- 9 Identification of Persons Responsible for the Prospectus
- 10 Joint and Several Nature of the Liability of the Parties Responsible for the Content of the Prospectus
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 24 The Netherlands
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 25 Luxembourg
- Preliminary Material
- I Introduction
- II The Legal Basis for Prospectus Liability
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 26 United Kingdom
- Preliminary Material
- I Introduction: The Prospectus Regulation and ‘Brexit’
- II The Legal Basis for Prospectus Liability
- 1 An Historical Excursus
- 2 Civil Liability under the Prospectus Directive in the UK
- 3 Civil Liability under the Prospectus Regulation in the UK
- 4 The Tiers of Provisions
- 5 Statutory Rule-Making Powers
- 6 The Consultation Process
- 7 The Principal Changes from Directive to Prospectus
- 8 The New Financial Conduct Authority Rules
- 9 The Statutory Base
- 10 The Threshold Cause of Action
- 11 The Principal Provision: Section 90 of the Financial Services and Markets Act 2000
- III Definition of ‘Prospectus’
- IV Persons Responsible for the Prospectus
- V Persons Liable for Misleading Prospectus Information
- VI Persons Who Can Sue for Damages Caused by a Misleading Prospectus
- VII Defectiveness of Prospectus Information
- VIII Fault of the Party Who is Sued
- IX Causation and Damages
- X Evidence
- XI Disclaimers
- XII Prospectus Summary
- XIII Directors’ Liability
- 18 The Influence of the EU Prospectus Rules on Private Law
- Part I General Aspects
- Further Material
