The EU Commission has announced some proposed temporary changes to the Prospectus Regulation in light of the Covid-19 pandemic.
Changes that would be introduced by the draft regulation include:
- the creation of an EU Recovery Prospectus, which is a short-form prospectus that can be used for secondary offerings by issuers who have been admitted to trading for 18 months; and
- amendments to clarify who financial intermediaries need to contact when a supplementary prospectus is published.
The regulation will come into force on the 20th day following its publication in the Official Journal (the timing of this is not yet clear, as the draft regulation still needs to go through EU legislative procedures), and will expire after 18 months.