On 13 July 2018, the European Securities and Markets Authority (ESMA) published a consultation paper on guidelines on risk factors under the Prospectus Regulation, as mandated under Article 16(4) of the Prospectus Regulation.

The draft guidelines expand on concepts and instructions provided for in Article 16 of the Prospectus Regulation, namely: specificity, materiality, corroboration and categorisation of risk factors. In addition, the draft guidelines are accompanied by explanatory text providing Member State competent authorities with the necessary information required to comply with the principles outlined in the draft guidelines.

The deadline for comments on the consultation paper is 5 October 2018.