Part III Prospectus Liability and Litigation, 18 The Influence of the EU Prospectus Rules on Private Law

Subject(s):

Prospectus liability

This chapter examines the extent to which the civil courts are bound under EU law by the EU prospectus rules when judging issues of liability. It shows that that the influence of the new EU prospectus rules on private law is potentially considerable, but that the subject is unfortunately surrounded by much uncertainty. EU legislation on prospectus liability would be the best solution, not only for reasons of legal certainty but also for the sake of uniform investor protection and a truly level playing field in Europe. However, in the current political climate, that is likely to be a non-starter for the time being. The chapter concedes that our hopes must therefore be pinned on the Court of Justice of the European Union (CJEU), which will hopefully provide more clarity in the years ahead. But to achieve this the CJEU is dependent on the willingness of national civil courts to submit preliminary rulings with precisely formulated questions that give it sufficient insight into the facts of the case.