The EU Prospectus Regulation in full force as from 21 July 2019

On the 21st of July 2019, the European Regulation 2017/1129 (the “EU Prospectus Regulation”) which lays down the requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on the regulated market within a Member State, came into full applicability. It should be reminded that the applicability of the EU Prospectus Regulation was gradual with some of its provisions being applicable since 2017 and 2018 respectively.

In view of the above, the Cyprus Securities and Exchange Commission has announced that the repeal of the Prospectus Law, N.114(I)/2005, is expected within the year.   New legislation will be adopted for the matters that need to be addressed at national level. 

It should be noted that  Article 4(3)(e) of the Prospectus Law,N.114(I)/2005  on the exercised discretion of the Republic of Cyprus  to exempt  offers of securities  to the public from the obligation to publish a prospectus provided that the total consideration of each such offer in the European Union is less than €5.000.000 calculated over a period of 12 months shall remain in force  until the adoption of the new national legislation.