The Prospectus Directive (the “PD”) and the Prospectus Directive Regulation (the “PD Regulation”) were recently amended, in each case with effect from 1 July 2012. These new rules introduced a number of significant changes relating to the way in which both final terms and base prospectuses are prepared and used by issuers of debt and structured products. As we move further into 2013 and the market familiarises itself with the new legislation, we consider three key clarifications to the new prospectus regime that have recently been provided in the form of two consultations by the Financial Services Authority (“FSA”) and the European Securities and Markets Association (“ESMA”):

What information should be included in final terms and / or the base prospectus?

The Prospectus Directive Regulation specifies in Article 22.4 that only the following can be included in final terms...