In a new notice, the French Autorité des Marchés Financiers or AMF has stated that they have decided to amend its General Regulations. They have also published a new set of instructions in order to regulate the entry as per the latest Prospectus Regulations.
As per this new set of regulations, the threshold limit for offering Securities that needs a prospectus is increased to EUR 8 million. With this new regulation being put into effect from 21st July 2018, it has now also been made mandatory to prepare an information indenture if the public offerings of the uncharted securities fail to match the threshold limit.
The provisions for the PR3 or the European Prospectus Regulations for providing securities requiring a prospectus has also been annexed with this new set of regulation. Furthermore, a new notice numbered 2018-07 will also be published to establish this new rule. The following points will be covered in the new notice:
- The threshold limit for the public offering of financial securities for which a prospectus will have to be published after being reviewed by AMF has been increased to EUR 8 million.
- If the securities fail to meet the threshold limit, an information regime has to be published without carrying out an initial review from AMF has to be published for the case of securities that are not enlisted in any crowdfunding website.
- In the case of Initial Public Offerings or IPOs on a fully organized multifaceted trading facility that is open to any individual, an information indenture has to be issued as per the market rules as well as reviewed by the operator stuff of the market when the securities fall under the threshold limit of EUR 8 million.
These new outlines have been preparing to consider the decisions made during the Initial Public Consultation which was organized at the time period between 24th January 2018 to 21st February 2018 along with reviews received during the second consultation that was held between 6th June 2018 to 29th June 2018.