The European Securities and Markets Authority (ESMA) has produced a very helpful report which compares the liability regimes of 27 of the 28 EU member states plus Norway and Iceland in relation to liability under the Prospectus Directive. It is important to recognise that, whilst the Prospectus Directive is an EU instrument, criminal law and most areas of civil justice are matters reserved to Member States over which they EU has only very limited competence. Accordingly, the liability regimes naturally differ over both civil and criminal liability.
The report contains an overview of the different arrangements and frameworks in place with the intention of assisting market participants. The report was compiled in response to a European Commission request of January 2011 for assistance in identifying and monitoring the different regimes in EEA states.
The report analyses the various heads of liability, who is entitled to bring a claim and what remedies may be available. The analysis then collates jurisdictions in a useful manner to give the reader a detailed understanding of the prospectus liability landscape across Europe.
ESMA's report contains a very useful table which will assist participants in understanding the prospectus-related requirements of each relevant jurisdiction and, in this regard, represents an important step in the European institutions facilitating the completion of the single market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
