On May 14, the UK Prospectus Regulations 2013 and an accompanying explanatory memorandum were published.  These regulations amend sections of the Financial Services and Markets Act 2000 (FSMA) as part of the implementation of the Directive amending the Prospectus Directive and Transparency Directive (2010/73/EU).

The most significant amendment is to section 86(1A) of FSMA, which sets out the circumstances in which a further prospectus is not required in the context of a retail cascade.  Section 86(1A) of FSMA now provides that, in the case of certain non-equity securities issued in a continuous or repeated manner by credit institutions, this condition is satisfied if the securities have not ceased to be issued in a continuous or repeated manner.  The Prospectus Regulations 2013 will come into force on May 31.  Prospectus Regulations 2013.  Explanatory Memorandum.