On 26 June 2019, there was published on legislation.gov.uk, the Financial Services and Markets Act 2000 (Prospectus) Regulations 2019. These Regulations give effect to the EU Prospectus Regulation by making amendments to the Financial Services and Markets Act 2000.
The Regulations amend the Financial Services and Markets Act 2000 to give effect to the requirements of the EU Prospectus Regulation. The Financial Services Act 2012, the Data Protection Act 2018 and relevant secondary legislation are consequentially amended.
Whilst the EU Prospectus Regulation will apply in its entirety in the UK on 21 July 2019, the Regulation does permit Member States to impose additional requirements beyond those set out in the Regulation in relation to a Prospectus Summary and administrative sanctions.
Each prospectus must contain a summary document, containing the key information (as specified within the EU Prospectus Regulation) for potential investors. If a firm is issuing an investment or insurance-based investment product to retail investors, they must also comply with the PRIIPs Regulation. This introduces a standardised disclosure document (Key Information Document or KID). The EU Prospectus Regulation allows issuers who are subject to the PRIIPs regulation to substitute information required for a Prospectus Summary with certain elements of their KID. Member States are also given the option to require all issuers to which the PRIIPs Regulation applies, to make this substitution. HM Treasury decided not to extend this obligation to all issuers, but rather to maintain the flexibility for issuers to decide to substitute information required for a Prospectus Summary with certain elements of their KID, as provided for by the EU Prospectus Regulation.