The European Union Prospectus Regulation 2017/1129 (EUPR) came into effect on 21 July 2019. You can refer to our previous briefing on this here.
Under Article 1(4)(i) of the EUPR all issuers listed or headquartered outside the EEA can now offer shares to their existing or former directors or employees without preparing a prospectus.
However you do have to make available a short information document containing brief information on the number and nature of the securities being offered and the reasons for and details of the offer.
What should we do?
If you’re already offering your share plans in the EEA, you don’t need to prepare a prospectus or worry about de minimis limits. Contact us if you need help with preparing the information document.
If you don’t currently offer your share plans in the EEA and would like to, we’d be happy to talk to you about what’s involved.
If you have historically relied on the employee share plans exemption under the European Union Prospectus Directive 2003/71, which the EUPR has replaced, don’t forget to make sure you are referring to the correct legislation.
What about Brexit?
Nothing will change. Parliament has passed a law to ensure that the same laws will apply after Brexit.