The Exchange has responded to CESR’s consultation on potential amendments to Regulation 809/2004 regarding the historical financial information which must be included in a prospectus. We fully support initiatives that ensure prospective shareholders have sufficient information on which to base investment decisions.
Complex financial histories by their very nature do not follow a standard pattern. As such, the regulatory approach should allow the competent authority to use its discretion on a case-by-case basis. Such discretion should encompass an element of ‘materiality’ to ensure that relevant detail is included and if not an explanation is provided.
We believe that only a limited change should be made to the Regulation to allow competent authorities to require further information, supported by guidance and examples at Level 3 on the financial information that competent authorities agree amongst themselves would be necessary.