The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

EU directive to hit share offerings in Europe

Corporates ought to seriously consider the impact of the EU Prospectus Directive before embarking on a public offering in any of the EU states, warns Mercer Human Resource Consulting. The directive, published at the end of 2003, stipulates that corporates registered outside the EU must comply with the financial regulations of the first EU state into which they make a public share offering.

Under existing laws corporates have been subject to the regulations of each EU country in which they made a share offering. The new legislation comes in to force in June 2005.

Most corporates registered outside the EU, according to Mercer, have little understanding of the regulatory cost of a public offering in the EU's borders.

"The situation is confusing for companies because the directive has yet to be adopted by member states," says Alexy Armitage, European principal at Mercer's, "and so far the EU has provided very little guidance on compliance. Companies need to select a state based on past experience and, until the directive is adopted, they will continue to be regulated under existing laws."

Which country understands your business best? Which has the most financial service experience? Which country has the most pragmatic regulator? These questions, say Mercer's, ought to determine the thinking of ex-EU corporates looking to make a public offering in the EU.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree