ESMA Issues Q&As Clarifying Prospectus and Transparency Rules in Case of a No-Deal Brexit

ESMA recently issued two sets of Q&As clarifying the application of certain provisions of the Prospectus Directive and the Transparency Directive in the event of a hard Brexit

ESMA clarified in the Q&As that:

• Issuers that currently have the U.K. as their home member state under the Prospectus Directive or the Transparency Directive will need to have a new home member state for the purposes of the two directives after Brexit; and
• Prospectuses approved by the U.K. Financial Conduct Authority may not be “passported” out of the U.K. following Brexit.