Prospectus Regulation and Prospectus Liability

United Kingdom
Table of Cases
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
European Union
Othernational Jurisdictions
	France
Germany
	Italy
	Luxembourg
	Netherlands
	Spain
	United States
(p. xix) United Kingdom
	Statutes
Table of Legislation
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
Subordinate Legislation
European Union Legislation
	Treaties
	Brexit-relatedAgreements
	Directives
	Regulations
		Commission Delegated Directives
		Commission Delegated Regulations
Other National Legislation
	Australia
	France
	Germany
	Italy
	Japan
	(p. xxxiv) Luxembourg
	Netherlands
	Spain
	United States
List of Contributors
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
Part I General Aspects, 1 Introduction
	Danny Busch, Guido Ferrarini, Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 3) 1  Introduction
I.  The Capital Markets Union Action Plan
II.  Brexit
III.  The New EU Prospectus Regime
IV.  Structure of the Book
	(p. 7) 1.  General Aspects
	2.  The New EU Prospectus Rules
	(p. 15) 3.  Prospectus Liability and Litigation
	Footnotes:
Part I General Aspects, 2 The IPO Process, IPO Disclosure, and the Prospectus Regulation
	Han Teerink
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 19) 2  The IPO Process, IPO Disclosure, and the Prospectus Regulation
I.  Introduction
II.  Key IPO Considerations
	1.  Reasons for an IPO
	2.  Preparing for an IPO
		(i)  IPO readiness
	3.  Execution of the IPO and Disclosure
		(i)  Management presentation
		(ii)  Early-look and pilot fishing meeting
		(iii)  Analyst presentation and research reports
		(iv)  Due diligence
			US securities laws and European IPOs—144A, 10b-5, and US practices
III.  The IPO Prospectus
	1.  Drafting the Prospectus
	2.  Drafting Sessions
	3.  Review and Approval of the IPO Prospectus
	4.  Format of the IPO Prospectus
	(p. 36) 5.  Review Period
	6.  Publication and Reading Time
	7.  Exemptions
		(i)  Completing the IPO—some final disclosure considerations
IV.  IPO Prospectuses and the Prospectus Regulation
	1.  Introduction
	2.  Risk Factors
		(i)  Implications of changes for IPOs
	3.  Use of Proceeds
		(i)  Implications of changes for IPOs
	4.  Summary in the IPO Prospectus
		(i)  Implications of changes for IPOs
	5.  Profit Forecasts and Profit Estimates
		(i)  Implications of changes for IPOs
V.  Concluding Remarks
	Footnotes:
Part I General Aspects, 5 The Disclosure Paradigm: Conventional Understandings and Modern Divergences
	Henry T. C. Hu
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 99) 5  The Disclosure Paradigm
	Conventional Understandings and Modern Divergences
I.  Introduction
(p. 102) II.  The Disclosure Paradigm: Conventional Understandings
	1.  Overview
	(p. 103) 2.  The SEC’s Basic Approach to Information: The ‘Descriptive Mode’ and ‘Intermediary Depictions’
III.  The Impact of Financial Innovation on Conventional Understandings
	1.  Complexity and the Need for a Portfolio of Modes of Information
		(i)  The limitations of the descriptive mode
		(ii)  The ‘transfer mode’, the ‘hybrid mode’, and the portfolio approach to information
		(p. 108) (iii)  Asset-backed securities and pure information: loan-level data and downloadable waterfall codes
		(iv)  Alternative data: the portfolio approach and original third-party company-specific information
	2.  The Exchange-Traded Fund: A Traded Security without Disclosure’s Heart and Soul
	3.  Decoupling and New Extra-Company Informational Asymmetries
		(i)  Overview
		(ii)  Credit default swaps and the empty creditor with negative economic exposure issue
IV.  The Regulatory Ends of Disclosure and the Emergence of a Parallel Disclosure Universe
	1.  Changing Regulatory Ends and the SEC
	2.  Systemic Risk: The SEC and the New Bank Regulator Disclosure Universe
		(i)  The global financial crisis, the SEC, and the call for a change in the SEC’s statutory mandate
		(p. 122) (ii)  The bank regulator public disclosure system
(p. 125) V.  Conclusion
	Footnotes:
Part II The New EU Prospectus Rules, 6 Transferable Securities and the Scope of the Prospectus Regulation: The Case of ICOs
	Guido Ferrarini, Paolo Giudici
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 129) 6  Transferable Securities and the Scope of the Prospectus Regulation
	The Case of ICOs
I.  Introduction
II.  Financial Instruments and Transferable Securities in MiFID II
III.  Transferable Securities in the Prospectus Regulation
(p. 134) IV.  The Rise of ICOs
	1.  Legal Issues
	2.  Token Categories
V.  ICOs and US Securities Regulation
VI.  ICOs and EU Securities Regulation
	1.  Current Approaches
	2.  Risk-Based Approach
	3.  Purposive Techniques
VII.  Conclusions
	Footnotes:
Part II The New EU Prospectus Rules, 8 The Contents of the Prospectus: Rules for Financial Information
	Giovanni Strampelli
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 167) 8  The Contents of the Prospectus
	Rules for Financial Information
I.  Introduction
II.  The Legal Background: Prospectus Regulation, Delegated Regulation, ESMA Recommendations, and Q&A
III.  Historical Financial Information
	1.  Annual and Interim Financial Reports to be Included in the Prospectus
	(p. 174) 2.  Accounting Standards
	(p. 175) 3.  The Change of Accounting Framework and the Impact of IAS 8 on Historical Financial Information
	4.  Incorporation by Reference
	(p. 177) 5.  The Alignment of the Operating and Financial Review Requirement with the Management Reports Required under the Accounting Directive
	6.  The Removal of the Requirement for Issuers of Equity and Retail Non-Equity to Include Selected Financial Information in the Prospectus
IV.  Pro Forma Financial Information
	(p. 179) 1.  Issuers Required to Provide Additional Financial Information
	2.  The Additional Information Relating to an Entity Other than the Issuer
	3.  Preparation and Presentation of Pro Forma Financial Information
	4.  Pro Forma Adjustments to Historical Accounting
	5.  Audit Requirement
V.  Profit Forecasts and Profit Estimates
	1.  The Relevance of Profit Forecast and Profit Estimates: Equity vs Non-Equity Issuance
	2.  Definition
	3.  Disclosure Requirements
	4.  The Deletion of Audit Requirements on Profit Forecasts and Estimates
VI.  Conclusions
	Footnotes:
Part II The New EU Prospectus Rules, 10 ‘Light’ Disclosure Regimes: The EU Growth Prospectus
	Andrea Perrone
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 229) 10  ‘Light’ Disclosure Regimes
	The EU Growth Prospectus
I.  Introduction
II.  The Problems of SME Market-Based Finance
(p. 233) III.  The EU Growth Prospectus
	1.  The Logic of the EU Growth Prospectus Regulation
	2.  The Perimeter of Regime
	(p. 236) 3.  The Content of the EU Growth Prospectus
IV.  A Critical Evaluation
V.  An Alternative View
VI.  Conclusion
	Footnotes:
Part II The New EU Prospectus Rules, 11 ‘Light’ Disclosure Regimes: Secondary Issuances
	Pim Horsten
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 243) 11  ‘Light’ Disclosure Regimes
	Secondary Issuances
I.  Introduction
II.  Background
	1.  The Capital Markets Union
	2.  The Prospectus Directive Review Consultation
(p. 247) III.  The Case for a Light Disclosure Regime for Secondary Offerings or Listings
	1.  Introduction
	(p. 248) 2.  The Transparency Directive
	3.  The Market Abuse Regulation
	4.  Options for a Light Disclosure Regime
IV.  Scope
	1.  Introduction
	2.  Secondary Issuances: What are These, and by Whom?
	3.  Offers or Admissions of What Securities? The Same? Same Class? Fungible?
(p. 259) V.  Content—What Information is not Specifically Prescribed?
	1.  Level 1 Text
	2.  Level 2: Commission Delegated Regulation and ESMA Advice
		(i)  Equity registration document
		(ii)  Debt registration document
		(iii)  Equity securities note
		(iv)  Debt securities note
	3.  Conclusion on Content
(p. 265) VI.  Conclusion: Use in Practice?
	Footnotes:
Part II The New EU Prospectus Rules, 12 The Summary and Risk Factors
	Robert ten Have
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 267) 12  The Summary and Risk Factors
I.  Introduction
II.  Purpose of the Summary and Risk Factors
	1.  Purpose of the Summary
	2.  Purpose of the Risk Factors
III.  The Summary and Risk Factors in the Single-Document Prospectus
	1.  The Summary
		(i)  General requirements for the summary
		(ii)  Prescribed format of the summary
		(iii)  Risk factors included in the summary
		(iv)  Key financial information regarding the issuer and guarantor
		(v)  Relationship with PRIIPs regulation
		(vi)  Length of the summary
	2.  The Risk Factors
IV.  The Summary and Risk Factors in Other Prospectus Types
	1.  Non-Retail, Non-Equity Prospectus
	(p. 284) 2.  Base Prospectus
	(p. 286) 3.  Prospectus Consisting of Separate Documents
	4.  Universal Registration Document
	(p. 288) 5.  Simplified Disclosure Regime for Secondary Issuances
	6.  EU Growth Prospectus
V.  Competent Authority’s Discretionary Powers
VI.  Responsibility for the Summary
VII.  Use of Language
VIII.  Conclusion
	Table 12.1  Required summary format and content per Article 7, Prospectus Regulation
	Footnotes:
Part II The New EU Prospectus Rules, 13 Prospectus Formats and Shelf Registration
	Dorothee Fischer-Appelt
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 295) 13  Prospectus Formats and Shelf Registration
I.  Introduction
II.  New Regulation and Delegated Acts
III.  Prospectus Formats and their Use in Practice
	1.  Overview
	2.  Stand-alone Prospectuses
	3.  Tri-Partite Prospectuses and the ‘Old’ Shelf Registration
	4.  Base Prospectuses and Final Terms/Supplements
	5.  New Summary Requirements
IV.  New Prospectus Formats
	(p. 301) 1.  Simplified Prospectus for Secondary Issuances
	2.  Introduction of the EU Growth Prospectus
	3.  The New Universal Registration Document (URD)
		(i)  Overview
		(ii)  ‘Well-known’ issuers
		(iii)  Approval process and passporting
		(iv)  Amendments to URDs
			(a)  Amendments to URDs where the URD is not in use as a constituent part of a prospectus
			(b) Where the URD is in use as a constituent part of a prospectus
		(v)  URD and other registration documents and annual reports
		(vi)  Content of the URD
		(vii)  URD and incorporation by reference
V.  Discussion of URD and Simplified Prospectus
VI.  US Shelf Registration
	1.  Overview and Evolution
	2.  Timing of Filings in US Practice
	3.  Comparison with URD
VII.  Conclusion
	Footnotes:
Part II The New EU Prospectus Rules, 14 The New Advertisement RegimeWhat a Difference a Word Makes?
	Gerard Kastelein, Tom Reutelingsperger
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 319) 14  The New Advertisement RegimeWhat a Difference a Word Makes?
I.  Introduction
II.  Background
III.  The Prospectus Regulation
	1.  General
	2.  From ‘Announcement’ to ‘Communication’
	3.  Level 1 Requirements to Advertisements
(p. 325) IV.  The Delegated Regulation
	1.  Identification of (and Reference to) the Prospectus in any Advertisement
	2.  Specific Content to be Included in any Advertisement (Retail Only)
	3.  Requirements as to Amendments to Advertisements in Case a Supplement is Published
	4.  General Requirement to Align Information Concerning Offers of Securities
V.  Supervision of the Advertisement Regime—Risk of Conflicting Views of Authorities?
	1.  Procedure for the Cooperation between Competent Authorities
	(p. 331) 2.  What is Next?
VI.  No Grandfathering
VII.  Conclusion
	Footnotes:
Part II The New EU Prospectus Rules, 15 Omission of Information, Incorporation by Reference, Publication, and Language of the Prospectus
	Paola Leocani
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 333) 15  Omission of Information, Incorporation by Reference, Publication, and Language of the Prospectus
I.  Review of the Prospectus Directive and the Purpose of the Prospectus Regulation
II.  The Scope of the Prospectus and Different Types of ‘Omission’ of Material Information Allowed
III.  Incorporation by Reference
	1.  Incorporation by Reference under the Prospectus Directive: Prevalence of the Prospectus Directive Principles of Completeness, Accessibility, and Comprehensibility
	2.  Making the Incorporation by Reference Mechanism More Flexible and Assessing the Need for Supplements in Case of Parallel Disclosure of Inside Information
	3.  Incorporation by Reference under Article 19, Prospectus Regulation
	4.  Incorporation by Reference and ‘Draw-Down’ Prospectus
(p. 350) IV.  Omission of Information
	1.  Overview: Article 18, NPR
	(p. 351) 2.  Omission of Information—Offer Price, Yield, Amount of the Securities (Art. 17, NPR)
V.  Publication of the Prospectus (Art. 21, NPR)
(p. 355) VI.  Language (Art. 27, NPR)
	Footnotes:
Part II The New EU Prospectus Rules, 16 The Approval of Prospectus: Competent Authorities, Notifications, and Sanctions
	Carmine Di Noia, Matteo Gargantini
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 359) 16  The Approval of Prospectus
	Competent Authorities, Notifications, and Sanctions
I.  Introduction
II.  Prospectus Approval and the Role of National Competent Authorities
	1.  The Transfer of Approval of the Prospectus
	2.  Prospectus Approval: Definitions
	3.  The Scrutiny
		(i)  Completeness
		(ii)  Consistency
		(iii)  Comprehensibility
		(iv)  Stocktaking
	4.  Timing and Procedure of Prospectus Approval
III.  Geographical Validity of Prospectus
IV.  Linguistic Regime
V.  Sanctioning Regime
	1.  Criminal and Administrative Sanctions
	(p. 374) 2.  The Menu of Sanctions and the Due Process
	3.  Publication of Decisions
VI.  Remaining Spaces for Arbitrage in the Prospectus Regime
VII.  Identifying the National Competent Authority
VIII.  A Focus on Equity Securities
	(p. 381) 1.  Tying Prospectus Regime to Company Law
	2.  Regulatory Arbitrage Techniques in Equity Markets
	3.  Alternative Connecting Factors
IX.  Competition versus Centralization: A Trade-Off?
X.  Conclusion
	Footnotes:
Part II The New EU Prospectus Rules, 17 The Prospectus Regime and Brexit
	Simon Gleeson
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 391) 17  The Prospectus Regime and Brexit
I.  Introduction
(p. 393) II.  Brexit and Listing—The UK Position
III.  How Will Transition Work?
IV.  Enacting Transition
V.  Listing Documents and Prospectuses
VI.  When is a Prospectus Required?
(p. 398) VII.  A Security
VIII.  Public Offer
IX.  Listing Particulars
X.  Home Member State
XI.  Reoffers and Cascades
XII.  Offer Document Content
	1.  The Summary
	2.  The Base Prospectus
XIII.  Language
XIV.  Conclusion
	Footnotes:
Part III Prospectus Liability and Litigation, 18 The Influence of the EU Prospectus Rules on Private Law
	Danny Busch
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 409) 18  The Influence of the EU Prospectus Rules on Private Law
I.  Introduction
II.  Prospectus Regulation and Civil Liability
	1.  Liability of the Persons Responsible for the Prospectus
		(i)  General
		(ii)  Does responsibility rest with the issuer or with the administrative, supervisory, or management body?
		(p. 412) (iii)  Offeror of the securities
		(iv)  Person asking for admission to trading on a regulated market
		(v)  Guarantor
		(vi)  Minimum harmonization
		(vii)  Provisions of national law governing civil liability
	2.  Liability for the Summary
(p. 415) III.  Information Obligations under the EU Prospectus Rules
	1.  The Basic Principle
	2.  Elaboration of the Basic Principle
	(p. 417) 3.  Risk Factors
	4.  Summary
IV.  Unlawfulness and Imputability
	1.  May Civil Courts be More Flexible than the EU Prospectus Rules?
		(i)  General
		(ii) European principle of effectiveness
		(iii)  Materiality criterion?
		(iv)  Grounds of justification
		(v)  Soft law
		(vi)  Imputability
	2.  May Civil Courts be Stricter than the EU Prospectus Rules?
		(i)  Immofinanz and Genil v Bankinter
		(ii)  Nationale-Nederlanden v Van Leeuwen
			(a)  Legal framework
			(b)  Questions referred for a preliminary ruling
			(c)  Duties to furnish additional information on the basis of reasonableness and fairness?
		(iii)  Consequences of Nationale-Nederlanden v Van Leeuwen
		(p. 428) (iv)  Article 6(1), Prospectus Regulation and Delegated Regulation (EU) 2019/980
		(v)  The operation of the prospectus as a European passport
		(p. 430) (vi)  Example 1
		(vii)  Example 2
		(viii)  Securities not covered by the Annexes to Delegated Regulation (EU) 2019/980
		(ix)  Investor protection and a European capital market
		(x)  Differentiation between retail and wholesale investors?
		(p. 432) (xi)  Use of language
		(xii)  Inclusion of non-material information
V.  The Influence of the EU Prospectus Rules on the Relativity Requirement
VI.  The Influence of the EU Prospectus Rules on the Proof of Causal Link
(p. 435) VII.  The Influence of the EU Prospectus Rules on Determination of the Extent of the Loss or Damage
(p. 436) VIII.  The Influence of the EU Prospectus Rules on a Limitation or Exclusion of Liability
(p. 437) IX.  Assessment by National Courts of their own Motion of Compliance with the EU Prospectus Rules in Cases Involving Private Investors
X.  The EU Prospectus Rules and Liability of Financial Regulators
	1.  Assessment by the Regulator
	2.  Italy
	3.  Nikolay Kantarev v Balgarska Narodna Banka
	4.  Article 20(9), Prospectus Regulation
XI.  Conclusion
	Footnotes:
Part III Prospectus Liability and Litigation, 19 Prospectus Liability: Competent Courts of Jurisdiction and Applicable Law
	Matteo Gargantini
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 441) 19  Prospectus Liability
	Competent Courts of Jurisdiction and Applicable Law
I.  Why do Jurisdiction and Applicable Law Matter? An Introduction
II.  The Default Jurisdictional Regime for Prospectus Liability
	1.  Cross-Border Prospectus Liability and the Brussels I-bis Regime
	2.  An Overview of the European Court of Justice Case Law
(p. 452) III.  The Default Regime on Applicable Law for Prospectus Liability
IV.  Taking Stock of Default Rules: A System in Need of Reform
V.  Deviating from Default Rules: The Issuer Choice Regime
	1.  Jurisdictional Agreements in Securities Litigation
	2.  Remaining Issues in Issuer Choice Regime
VI.  Conclusion
	Footnotes:
Part III Prospectus Liability and Litigation, 21 France
	Thierry Bonneau
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 493) 21  France
I.  Introduction
II.  The Legal Basis for Prospectus Liability
III.  Definition of ‘Prospectus’
IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
X.  Evidence
XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	Footnotes:
Part III Prospectus Liability and Litigation, 22 Italy
	Paolo Giudici
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 505) 22  Italy
I.  Introduction
(p. 506) II.  The Legal Basis for Prospectus Liability
III.  Definition of ‘Prospectus’
IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
(p. 513) VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
X.  Evidence
XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	Footnotes:
Part III Prospectus Liability and Litigation, 23 Spain
	Javier Redonet Sánchez del Campo
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 517) 23  Spain
I.  Introduction
II.  The Legal Basis for Prospectus Liability
	1.  Statutory Provisions on Prospectus Liability
	2.  The Nature of Prospectus Liability
III.  Definition of ‘Prospectus’
IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
	1.  The Issuer of the Securities
	2.  The Seller of the Securities
	3.  The Person Seeking Admission to Listing of the Securities
	4.  The Directors of the Issuer, the Seller of the Securities, or the Person Seeking Admission to Listing
	5.  The Guarantor of the Securities
	6.  The Lead Managers of the Placement of the Securities
	(p. 527) 7.  The Persons Accepting Liability on the Prospectus or any Portion Thereof
	8.  The Persons Who Have Authorized the Prospectus
	9.  Identification of Persons Responsible for the Prospectus
	10.  Joint and Several Nature of the Liability of the Parties Responsible for the Content of the Prospectus
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
(p. 533) X.  Evidence
(p. 534) XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	Footnotes:
Part III Prospectus Liability and Litigation, 24 The Netherlands
	Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 537) 24  The Netherlands
I.  Introduction
II.  The Legal Basis for Prospectus Liability
III.  Definition of ‘Prospectus’
IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
	1.  The Issuer
	2.  The Lead Manager
	3.  The Co-Managers
	4.  The Selling Shareholder
	(p. 546) 5.  The Issuer’s Auditor
	6.  Joint and Several Liability?
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
(p. 549) VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
(p. 550) X.  Evidence
XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	Footnotes:
Part III Prospectus Liability and Litigation, 25 Luxembourg
	Veronique Hoffeld
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 553) 25  Luxembourg
I.  Introduction
II.  The Legal Basis for Prospectus Liability
III.  Definition of ‘Prospectus’
IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
X.  Evidence
(p. 568) XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	Footnotes:
Part III Prospectus Liability and Litigation, 26 United Kingdom
	Gerard McMeel
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
(p. 571) 26  United Kingdom
I.  Introduction: The Prospectus Regulation and ‘Brexit’
	1.  The Scenarios
		(i)  Scenario (1): ‘no deal’
		(ii)  Scenario (2): a ‘withdrawal agreement’
		(p. 575) (iii)  Scenario (3): no Brexit
	2.  The Withdrawal Act
	3.  UK Financial Services Legislation
	4.  The Role of the Financial Services Authority/Financial Conduct Authority
II.  The Legal Basis for Prospectus Liability
	1.  An Historical Excursus
	2.  Civil Liability under the Prospectus Directive in the UK
	(p. 580) 3.  Civil Liability under the Prospectus Regulation in the UK
	4.  The Tiers of Provisions
	5.  Statutory Rule-Making Powers
	6.  The Consultation Process
	7.  The Principal Changes from Directive to Prospectus
	8.  The New Financial Conduct Authority Rules
	9.  The Statutory Base
	10.  The Threshold Cause of Action
	(p. 584) 11.  The Principal Provision: Section 90 of the Financial Services and Markets Act 2000
III.  Definition of ‘Prospectus’
(p. 586) IV.  Persons Responsible for the Prospectus
V.  Persons Liable for Misleading Prospectus Information
VI.  Persons Who Can Sue for Damages Caused by a Misleading Prospectus
VII.  Defectiveness of Prospectus Information
VIII.  Fault of the Party Who is Sued
IX.  Causation and Damages
	1.  Causation
	2.  Measure of Compensation
	3.  Other Forms of Liability
X.  Evidence
XI.  Disclaimers
XII.  Prospectus Summary
XIII.  Directors’ Liability
	1.  The Royal Bank of Scotland Rights Litigation
	2.  The Brexit Scenarios Revisited
		(i)  Scenarios (1): ‘no deal’
		(ii)  Scenario (2): a ‘withdrawal agreement’
		(iii)  Scenario (3): no Brexit
	3.  The Future UK Financial Regulatory Framework
	Footnotes:
(p. 599) Index
Index
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
	From: Prospectus Regulation and Prospectus Liability
	Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx