Prospectus Regulations 2011

Prospectus Regulations 2011

The Prospectus Regulations 2011 came into force on 31 July 2011.

The Regulations amend certain provisions of the Financial Services and Markets Act 2000 governing when a prospectus must be published in connection with an offer of shares to the public or admitted to trading on a regulated market.

 The amendments made by the Regulations:

  •     raise the threshold for an offer of securities in the EU for which a prospectus is required from 2.5 million euros to 5 million euros;
  •     remove the requirement for a prospectus for offers addressed to fewer than 150 investors per member state (formerly 100 investors).

The Government decided to implement these key provisions almost a year in advance of the deadline. Small companies undertaking secondary fundraising, in particular, should benefit from the legislation, and fewer offers will require a prospectus to be produced.

A link to the legislation can be found here:

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