UK Financial Conduct Authority Consults on Proposed Changes to Handbook for Implementing the EU Prospectus Regulation

The Financial Conduct Authority has published for consultation proposed changes to the Handbook. The changes are to align the Prospectus Rules sourcebook within the Handbook to ensure it is consistent with the new EU Prospectus Regulation that came into force on July 20, 2017.

The EU Prospectus Regulation sets out information that companies need to disclose to investors and potential investors in a prospectus when raising capital. Even though certain provisions of the EU Prospectus Regulation were anticipated to come into effect after the U.K.’s anticipated exit from the EU on March 29, 2019, the EU Prospectus Regulation will still be applicable during any Brexit transition or implementation period.

The consultation proposes the updating of the FCA’s Prospectus Rules sourcebook to ensure it is consistent with the new EU Prospectus Regulation. This mainly involves removing existing rules, which implemented the Prospectus Directive in the U.K., as the EU Prospectus Regulation will repeal and replace the Prospectus Directive.

Responses to the consultation should be submitted by March 28, 2019. The FCA intends to publish its policy statement by the end of May 2019. 

View the consultation paper. 

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