Skip to main content
Home
  • About ESMA
    • Governance Structure
      • Board of Supervisors
      • Management Board
      • Senior Management
      • Joint Committee
      • CCP Supervisory Committee
      • CCP Resolution Committee
      • Joint Monitoring Mechanism
      • Standing Committees
      • SMSG
      • Board of Appeal
      • Ethics and Conflicts of interest
    • Internal Organisation
      • Strategy and Work Programme
      • Working Methods
      • Diversity, Equity and Inclusion
    • International Cooperation
    • Legal Notice and Data Protection
    • Transparency and Access to Documents
    • Agenda
    • Careers
    • Procurement Opportunities
  • ESMA's Activities
    • Investors and Issuers
      • Benchmark Administrators
      • Credit Rating Agencies
      • External Reviewers of European Green Bonds
      • Fund Management
      • Issuer Disclosure
      • Investment Services and Crowdfunding
    • Markets and Infrastructure
      • Central Counterparties
      • Data Reporting Services Providers
      • Trading
      • Consolidated Tape Providers
      • Post-trading
      • Shortening the settlement cycle to T+1 in the EU
      • Market Integrity
      • Short Selling
      • Central Securities Depositories
      • Securitisation
      • Trade Repositories
    • Risk Analysis
      • Risk Monitoring
      • Topical Analysis
      • Interactive Dashboards
    • Sustainable Finance
      • Climate benchmarks and ESG disclosure
      • CRAs and Sustainability
      • Investment Services and Fund Management
      • Sustainability Reporting
    • Digital Finance and Innovation
      • Digital Operational Resilience Act (DORA)
      • DLT Pilot Regime
      • Markets in Crypto-Assets Regulation (MiCA)
    • Supervision and Convergence
      • Investigations and Inspections
      • Supervisory Convergence Tools
      • Sanctions and Enforcement
      • Enforcement Convergence Initiatives
      • Breach of Union Law
    • New supervisory and oversight mandates
    • Data
      • Data Reporting
      • Databases and Registers
      • Statistical Information
    • Listing Act
  • News & Publications
    • News
    • Documents
    • Speeches
    • Newsletter
    • Interactive Single Rulebook
    • Guidelines, Recommendations and Technical Standards
    • Peer Reviews
    • Risk Monitoring and Analysis
    • Questions and Answers
  • Investor Corner
    • Is the firm regulated?
    • Get ready to invest
    • Frauds and Scams related to ESMA Logo and ID
    • Publications for Investors
    • Product Intervention
    • Make a complaint
    • Cost of Investment Products
  • Interact With ESMA
    • Media Corner
    • Speaking Requests
    • Stakeholder Engagement
      • Stakeholder Relations
    • Consultations
    • Events
    • Whistleblowers
  • Contact & Help
    • Contact Information
    • FAQs
    • Glossary

Breadcrumb

  1. Home
  2. News and Publications
  3. Interactive Single Rulebook
  4. Prospectus Regulation
  5. Article 14 Simplified Disclosure Regime For Secondary Issuances

Article 14 Simplified disclosure regime for secondary issuances

DA
Q&A

1.  The following persons may choose to draw up a simplified prospectus under the simplified disclosure regime for secondary issuances, in the case of an offer of securities to the public or of an admission to trading of securities on a regulated market:

(a) issuers whose securities have been admitted to trading on a regulated market or an SME growth market continuously for at least the last 18 months and who issue securities fungible with existing securities which have been previously issued;
(b) without prejudice to Article 1(5), issuers whose equity securities have been admitted to trading on a regulated market or an SME growth market continuously for at least the last 18 months and who issue non-equity securities or securities giving access to equity securities fungible with the existing equity securities of the issuer already admitted to trading;
(c) offerors of securities admitted to trading on a regulated market or an SME growth market continuously for at least the last 18 months;
(d) issuers whose securities have been offered to the public and admitted to trading on an SME growth market continuously for at least two years, and who have fully complied with reporting and disclosure obligations throughout the period of being admitted to trading, and who seek admission to trading on a regulated market of securities fungible with existing securities which have been previously issued.

The simplified prospectus shall consist of a summary in accordance with Article 7, a specific registration document which may be used by persons referred to in points (a), (b) and (c) of the first subparagraph of this paragraph and a specific securities note which may be used by persons referred to in points (a) and (c) of that subparagraph.

2.  By way of derogation from Article 6(1), and without prejudice to Article 18(1), the simplified prospectus shall contain the relevant reduced information which is necessary to enable investors to understand:

(a) the prospects of the issuer and the significant changes in the business and the financial position of the issuer and the guarantor that have occurred since the end of the last financial year, if any;
(b) the rights attaching to the securities;
(c) the reasons for the issuance and its impact on the issuer, including on its overall capital structure, and the use of the proceeds.

The information contained in the simplified prospectus shall be written and presented in an easily analysable, concise and comprehensible form and shall enable investors to make an informed investment decision. It shall also take into account the regulated information that has already been disclosed to the public pursuant to Directive 2004/109/EC, where applicable, and Regulation (EU) No 596/2014. Those issuers referred to in point (d) of the first subparagraph of paragraph 1 of this Article that are required to prepare consolidated accounts in line with Directive 2013/34/EU of the European Parliament and of the Council after their securities’ admission to trading on a regulated market shall compile the most recent financial information pursuant to point (a) of the second subparagraph of paragraph 3 of this Article, containing comparative information for the previous year included in the simplified prospectus, in accordance with the International Financial Reporting Standards referred to in Regulation (EC) No 1606/2002 of the European Parliament and of the Council.

Those issuers referred to in point (d) of the first subparagraph of paragraph 1 of this Article that are not required to prepare consolidated accounts in line with Directive 2013/34/EU after their securities’ admission to trading on a regulated market shall compile the most recent financial information pursuant to point (a) of the second subparagraph of paragraph 3 of this Article, containing comparative information for the previous year included in the simplified prospectus, in accordance with the national law of the Member State in which the issuer is incorporated.

Third country issuers whose securities have been admitted to trading on an SME growth market shall compile the most recent financial information pursuant to point (a) of the second subparagraph of paragraph 3 of this Article, containing comparative information for the previous year included in the simplified prospectus, in accordance with their national accounting standards, provided that those standards are equivalent to Regulation (EC) No 1606/2002. If those national accounting standards are not equivalent to the International Financial Reporting Standards, the financial information shall be restated pursuant to Regulation (EC) No 1606/2002.

3.  The Commission shall, by 21 January 2019, adopt delegated acts in accordance with Article 44 to supplement this Regulation by setting out the schedules specifying the reduced information to be included under the simplified disclosure regime referred to in paragraph 1.

The schedules shall include in particular:

(a) the annual and half-yearly financial information published over the 12 months prior to the approval of the prospectus;
(b) where applicable, profit forecasts and estimates;
(c) a concise summary of the relevant information disclosed under Regulation (EU) No 596/2014 over the 12 months prior to the approval of the prospectus;
(d) risk factors;
(e) for equity securities, including securities giving access to equity securities, the working capital statement, the statement of capitalisation and indebtedness, a disclosure of relevant conflicts of interest and related-party transactions, major shareholders and, where applicable, pro forma financial information.

When specifying the reduced information to be included under the simplified disclosure regime, the Commission shall take into account the need to facilitate fundraising on capital markets and the importance of reducing the cost of capital. In order to avoid imposing unnecessary burdens on issuers, when specifying the reduced information, the Commission shall also take into account the information which an issuer is already required to disclose under Directive 2004/109/EC, where applicable, and Regulation (EU) No 596/2014. The Commission shall also calibrate the reduced information so that it focusses on the information that is relevant for secondary issuances and is proportionate.

Home
ESMA is an authority of the European Union Home
  • Careers
  • ESMA Documents
  • Contact & Help
  • Media Corner
  • Cookie Policy
  • Data Protection
Social Media