Regulator publishes new prospectus rules

THE IRISH Financial Services Regulatory Authority has published new prospectus rules which aim to introduce greater clarity and refinement to the prospectus review process and enhance the listing process for debt securities and funds on the Irish Stock Exchange.

The rules have been published in line with Ireland's implementation of the prospectus directive, which has overhauled the law in relation to the public offer of securities and their admission to trading on regulated markets.

The amendments made clarify the responsibilities of issuers, offerors or persons seeking admission to trading, the targets to which the financial regulator is committed and disclosures to be made in prospectus documents.

Moreover, certain functions of the Financial Regulator, which under the directive has been designated as the competent authority, will be delegated to the Irish Stock Exchange Limited. The rules will come into force on September 15th and, in the intervening period, the old prospectus rules, published in March 2006, will apply.

The Financial Regulator aims to issue comments on the initial draft prospectus within three working days and comments on second and subsequent drafts of the prospectus within two working days. Where a prospectus has previously been through the review process, the Financial Regulator aims to approve it on the day of receipt.

The regulator has also published guidance notes on the valuation of assets of money market funds and the valuation of assets of collective investment schemes, which clarify the extent to which a collective investment scheme, which is not a money market fund, may value some of its assets using an amortised cost method of valuation.