On 28 January 2019, the FCA published Consultation Paper 19/6: Changes to align the FCA Handbook with the EU Prospectus Regulation (CP19/6).
In CP19/6 the FCA sets out the changes that it plans to make to ensure that the Prospectus Rules sourcebook is consistent with the EU Prospectus Regulation (the Regulation). This mainly involves removing existing rules, which implemented the Prospectus Directive in the UK, as the Regulation will repeal and replace it.
The Regulation entered into force on 20 July 2017. While some of its provisions are already applicable across the EU, most are due to apply from 21 July 2019. It is on this date that the Prospectus Directive and associated EU measures made under it will be repealed.
The FCA’s consultation caters for the scenario where the UK leaves the EU with a Withdrawal Agreement which includes an implementation period. During this period, set to start on 29 March 2019 and lasting until 31 December 2020, EU law will continue to apply in the UK. Therefore the Regulation will apply in full and become directly applicable in the UK from 21 July 2019. However, in a no-deal scenario the FCA will not proceed with its consultation proposals. Under this scenario the Regulation is ‘specified EU financial services legislation’ in the Financial Services (Implementation of Legislation) Bill and the regulator will return with revised proposals once the UK Government has decided whether to proceed with a reform of the UK prospectus regime.
The deadline for comments on CP19/6 is 28 March 2019.