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LEGISLATION |
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The Financial Services and Markets Act 2000 (Financial Promotion) Amendment No.2) Order 2007 will come into force on 1 October 2007. There is a basic prohibition on unauthorised “financial promotions” (these are invitations or inducements to engage in investment activity, such as offering shares for sale) being made (s 21 FSMA 2000). There are various exemptions from the prohibition, but if a promotion does not fall within an exemption it will not breach the prohibition if it is approved by the FSA. Therefore, a prospectus approved by the UK Listing Authority (part of the FSA) is not a prohibited financial promotion (see ¶4845+). UKLA approved prospectuses benefit from a “European passport”, which means that they can be used in all other EU countries as long as they are notified to the correct authorities and include any necessary translations. Similarly, prospectuses approved by a competent authority in another member state can be used in the UK, subject to the same conditions, as far as the prospectus rules are concerned. From 1 October, prospectuses which have been approved by a competent authority in another member state will be treated as if they had been approved by the FSA for financial promotions purposes as well, as long as the FSA is informed of this approval. These prospectuses will therefore also fall outside of the prohibition, bringing the financial promotions regime into line with the Prospectus Directive and the prospectus regime (EC Directive 2003/71). |
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Exemptions to the financial promotions regime See CLM: ¶4825+, ¶4875+ |
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SI 2007/2615 |