Prospectus Proposal

Regulations entitled the Prospectus (Directive 2003/71/EC) Regulations 2005 (S.I. 324 of 2005) came into effect on 1 July 2005. These Regulations are intended to give effect to Directive 2003/71/EC of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading.

Directive 2003/71/EC of the European Parliament and of the Council on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC was formally adopted on 4 November, 2003.

The Directive will introduce a new "single passport for issuers". This means that once approved by the authority in one Member State, a prospectus would then have to be accepted everywhere else in the EU. In order to ensure investor protection, that approval would only be granted if prospectuses meet common EU standards with regard to disclosure of information (Frequently asked questions).