The Permanent Representatives Committee (Coreper) of the Council of the European Union has agreed a negotiating position on the proposed Prospectus Regulation. The Council is expected to confirm Coreper’s decision on 17 June 2016. If it does, the Council will also ask the Presidency to start talks with the European Parliament. These (so called) trilogue discussions (Council, Presidency, and Parliament) are likely to begin in September.  If they are successful, the trilogue will generate a version of the Regulation which the Parliament can adopt at first reading, and the Council can approve after that.

The Regulation “sets out to provide all types of [securities] issuers with disclsoure rules that are tailored to their specific needs, whilst making the prospectus a more relevant tool for informing potential investors. Transforming an existing directive into a regulation, [it will also] reduce [the] divergences that have emerged [through the implementation of the Prospectus Directive in and] by the member states [and] enhance the coherence of [the] prospectus rules throughout the EU …  [It also] establishes specific rules for companies already listed on a regulated market that wish to raise additional capital buy (sic) means of a secondary issuance, as well as for SMEs”.   

The legal basis for the Regulation is article 114 of the Treaty on the Functioning of the European Union (TFEU); and it will be made under the “ordinary legislative procedure” described in article 294 of the TFEU.

There is more information about each of these things in the Council’s press release, the Coreper-endorsed version of the Regulation and the TFEU.

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