ESMA Guidelines On Risk Factors Under Prospectus Regulation

Author:Ganado Advocates
Profession:GANADO Advocates

On 1 October 2019, ESMA published guidelines on the risk factors to be published in a prospectus in terms of the new Prospectus Regulation (the "Guidelines") which Guidelines shall apply from 4 December 2019. Under the new Regulation, risk factors are to be categorised according to the type of risk and must be listed in order of materiality (which refers to a combination of likelihood of occurrence as well as the scale of consequences).

The Guidelines are therefore primarily intended to help competent authorities when reviewing the specificity, materiality and presentation...

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