With regard to investor protection, MEP Wolf Klinz of the Alliance of Liberals and Democrats for Europe, who is responsible for the proposal on the amendment of the Prospectus Directive, only concentrated on the liability with regard to the content of the Prospectus. Basically, the issuer would be liable. If, however, a financial intermediary would amend the prospectus, liability would lie with the financial intermediary.

The period of validity for a basic prospectus should be extended to 36 months; employee schemes, however, should be exempt from the prospectus requirement. This would make it easier for small businesses, said Klinz.

The Liberal MEP received support from the MEPs of the European People’s Party. The only MEP to criticise some of the points mentioned by the rapporteur, was Catherine Stihler of the Alliance of Liberals and Democrats for Europe. She is against any extension of the period of validity for the basic prospectus.

Unfortunately central requirements of the Chamber of Labour, such as the obligation to provide private investors with a summary of the securities prospectus, making the prospectus available in the official language of the Member State, in which the investment is publicly offered, introducing more effective liability provisions or including an option for downloading the prospectus were not mentioned at all during the discussion.

The MEPs now have the opportunity of submitting amendment proposals for the draft Directive. One can only hope that the demands of the Consumer Protection Organisation will be considered after all.

Further information:

Commission proposal on the Prospectus Directive