ESMA's July 2016 Updated Q&A on Prospectuses

In its July 2016 updated questions and answers on prospectuses (“Q&A”), the European Securities and Markets Authority (“ESMA”) expressed the view that the oral communication of alternative performance measures (“APMs”) by an issuer or offeror at a roadshow or other live presentation is only permissible if such information is also included in the draft prospectus or, should the prospectus already have been published, in a supplement to the prospectus.

Issuers should take into account this broad interpretation of the consistency requirement regarding prospectuses and other offering-related communications when disclosing APMs.