The European Securities and Markets Authority has published Guidelines on risk factors under the EU Prospectus Regulation that will provide guidance to Member State national regulators when reviewing prospectuses. The Guidelines will apply from December 4, 2019. Within two months of the date of publication of the guidelines in all EU official languages, national regulators must notify ESMA whether they comply with the guidelines and, if they do not, whether they intend to comply. If they do not intend to comply, national regulators must explain why that is the case.
ESMA sets out 12 guidelines on risk factors, which focus on the following areas:
The guidelines also include examples of specific and material risk factors that national regulators may consider when reviewing disclosure.
View ESMA's Guidelines.
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