A prospectus , in finance , is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds , stocks , bonds and other investments, such as a description of the company's business, financial statements , biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information. In the context of an individual securities offering , such as an initial public offering , a prospectus is distributed by underwriters or other financial firms to potential investors. Today, prospectuses are most widely distributed through websites such as EDGAR and its equivalents in other countries.
28-524: [REDACTED] Look up prospectus in Wiktionary, the free dictionary. Prospectus may refer to: Prospectus (finance) , also called a concept note Prospectus (university) Prospectus (book) Prospectus (album) , a 1983 album by saxophonist Steve Lacy Parkland College 's newspaper Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
56-416: A 24-hour cooling period to give first-time investors the time to adequately consider their investment decision. The move came following a significant rise in social media promotion of financial products by finfluencers in 2022, with 14 times more having been posted than the previous year. The Financial Services Act of 2012 set out a new system for regulating financial services in order to protect and improve
84-594: A business must offer a broad range of retail investment products and give consumers unbiased and unrestricted advice based on comprehensive and fair market analysis . In February 2011, it was confirmed that the new head of the FCA would be Martin Wheatley , formerly chairman of Hong Kong's Securities and Futures Commission . However, Wheatley's appointment was not put in front of the Treasury Select Committee for
112-494: A pre-appointment hearing. Instead, the Government stated it would put Wheatley and future chief executives forward for a pre-commencement hearing, i.e. after they had been formally appointed but before they began the role. In July 2015, Wheatley resigned his post at the FCA following a vote of no confidence by George Osborne . In September 2015, Tracey McDermott took over from Wheatley as acting chief executive. Andrew Bailey
140-564: A regulated market. In the United Kingdom, the only regulated market is London Stock Exchange full list. The Alternative Investment Market (AIM) does not constitute a regulated market, nor does the Professional Securities Market ("PSM") for issues of debt securities. There are numerous exceptions to the requirement to publish a prospectus, although an exempt company may still be required to publish listing particulars where it
168-569: A securities offering in the United States, a prospectus is required to be filed with the Securities and Exchange Commission (SEC) as part of a registration statement . The issuer may not use the prospectus to finalize sales until the registration statement has been declared effective by the SEC, meaning it appears to comply on its face with the various rules governing disclosure unless the sale of securities
196-578: A single listing category and streamlined eligibility criteria to encourage a wider range of companies to issue shares in the UK. In April 2015, the FCA created a separate entity, the Payment Systems Regulator (PSR), in accordance with section 40 of the Financial Services (Banking Reform) Act 2013. The PSR's role is "to promote competition and innovation in payment systems, and ensure they work in
224-591: Is based within the FCA. It was established in January 2018 to oversee the 22 accountancy and legal professional bodies which supervise anti- money laundering compliance in view of the Money Laundering Act 2017 . The authority has significant powers, including the power to regulate conduct related to the marketing of financial products. It is able to specify minimum standards and to place requirements on products. It has
252-423: Is exempt from registration. If a company has been filing Form 10-K with the SEC for a certain period of time, has a market capitalization above a certain threshold, and takes certain procedural steps, it is permitted to offer securities using a simplified prospectus that incorporates information by reference to its SEC filings . In certain situations, such as when the offering is not required to be registered with
280-574: Is responsible for the conduct of around 58,000 businesses which employ 2.2 million people and contribute around £65.6 billion in annual tax revenue to the economy in the United Kingdom. On 19 December 2012, the Financial Services Act 2012 received royal assent , and it came into force on 1 April 2013. The Act created a new regulatory framework for financial services and abolished the Financial Services Authority . Specifically,
308-705: Is seeking admission of its shares to the full list or an admission document where it is seeking admission of its shares to AIM. The prospectus must be approved by the competent authority in the United Kingdom, which is currently the Financial Conduct Authority (FCA) in its capacity as the United Kingdom Listing Authority. If the purpose of the prospectus is to induce people to engage in an investment activity, it will also need to be issued or approved by an 'authorised person' or it will constitute an unlawful financial promotion under section 21 of
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#1732851833830336-585: The Financial Services and Markets Act 2000 . Financial Conduct Authority The Financial Conduct Authority ( FCA ) is a financial regulatory body in the United Kingdom . It operates independently of the UK Government and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of
364-569: The Revised Directive on Payment Services (PSD2), aiming to reduce fraud and improve security by requiring payment services providers to use two of the following three types of authentication when customers make online payments over €30 in the EEA: The FCA published new Listing Rules in 2024, aiming to simplify the UK listings regime, marking the most significant changes in over three decades. These rules, effective from 29 July 2024, created
392-704: The Act gave the Bank of England responsibility for financial stability, bringing together macro and micro prudential regulation, and created a new regulatory structure consisting of the Bank of England's Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority. With effect from 14 September 2019, the FCA introduced strong customer authentication rules as required by
420-633: The FCA once the FSA ceases operations in 2013. Griffith-Jones joined the FSA board in September 2012, as a non executive director and deputy chair. Charles Randell became chair of the FCA and PSR in April 2018. In October 2021, he resigned from this position and is scheduled to leave the post in Spring 2022. On February 7, 2022, Richard Lloyd was named to begin serving as interim FCA chair from June 2022. In June 2013,
448-518: The FCA released a report from Simon Davis from Clifford Chance LLP inquiring into the events of 27/28 March 2014 relating to the press briefing of information in the FCA's 2014/15 Business Plan. The report recommended: On 16 December 2014, the Treasury select committee commenced taking evidence on the press briefing. Shortly thereafter, committee chair Andrew Tyrie said it looked as if the FCA had been guilty of an "extraordinary blunder" and had created
476-498: The Financial Conduct Authority was criticised by the Parliamentary Commission on Banking Standards in their report "Changing Banking for Good", which stated: The interest rate swap scandal has cost small businesses dear. Many had no concept of the instrument they were being pressured to buy. This applies to embedded swaps as much as standalone products. The response by the FSA and FCA has been inadequate. If, as they claim,
504-455: The SEC, a prospectus is instead referred to as an " offering memorandum " or " offering circular ", but there are numerous industry standard terms and methods on how to write prospectus. In the case of municipal securities offerings, which are generally exempt from most of the federal securities laws, municipal issuers typically prepare an analogous form of disclosure document known as an "official statement." Prospectuses are generally prepared with
532-599: The UK's economy. The FCA will supervise banks to ensure they treat customers fairly, encourage innovation and healthy competition, and help the FCA to identify potential risks early so they can take action to reduce the risks. There are more than 10,000 mutual societies in the United Kingdom. The FCA are responsible for registering new mutual societies, keeping public records, and receiving annual returns. Beginning December 31, 2012, independent financial advisers (IFAs) are legally obliged to follow Retail Distribution Review (RDR) rules. In order to be classed as an IFA,
560-541: The assistance of the underwriter acting as issue manager (also called a bookrunning manager or " bookrunner "). Publication of information in relation to the issue of securities in the United Kingdom is governed by the Prospectus Rules, which implement the European law Prospectus Directive. A prospectus must be published where certain types of securities either are offered to the public or are requested for admission on
588-494: The consumer credit industry since 1 April 2014, taking over the role from the Office of Fair Trading . In July 2023, the FCA announced reforms aiming to curb the use of social media by 'finfluencers' to encourage the purchasing of harmful financial products by UK consumers. Among the reforms was a ban on crypto incentives, such as 'refer a friend' bonuses, a compulsion for finfluencers to have clear risk warnings and for products to have
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#1732851833830616-515: The financial markets in the United Kingdom. It focuses on the regulation of conduct by both retail and wholesale financial services firms. Like its predecessor the FSA , the FCA is structured as a company limited by guarantee . The FCA works alongside the Prudential Regulation Authority and the Financial Policy Committee to set regulatory requirements for the financial sector. The FCA
644-506: The increase in mortgage interest rates of the Bank of Ireland 's subsidiary of the United Kingdom. There had been calls for the resignation of chairman John Griffith-Jones because of his responsibility for auditing HBOS as chairman of KPMG at the time of the financial crisis of 2007–08 . There has also been criticism of Chief Executive Martin Wheatley because of his responsibility for the minibond fiasco in Hong Kong. On 10 December 2014,
672-528: The interests of the organisations and people that use them". From May 2019 some victims of authorized push payment fraud are eligible to receive a refund under the Contingent Reimbursement Model Scheme, a voluntary scheme overseen by the Payment Systems Regulator that provides protections for customers of signatory firms, subject to a number of exclusions. The Office for Professional Body Anti-Money Laundering Supervision ( OPBAS )
700-513: The power to investigate organisations and individuals. In addition, the FCA is able to ban financial products for up to a year while considering an indefinite ban. It has the power to instruct firms to immediately retract or modify promotions which it finds to be misleading and to publish such decisions. Furthermore, the FCA is able to freeze assets of individuals or organisations under investigation, regardless of whether they are innocent or guilty. The authority has been responsible for regulating
728-571: The regulators do not have the power to deal with these abuses, then it is for the Government and Parliament to ensure that the regulators have the powers they need to enable restitution to be made for this egregious mis-selling.—"Changing Banking for Good: Report of the Parliamentary Commission on Banking Standards", House of Lords , House of Commons The FCA was rebuked by the Treasury Select Committee for lack of concern over
756-462: The title Prospectus . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Prospectus&oldid=1222877788 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Prospectus (finance) In
784-522: Was appointed chief executive on 26 January 2016. After Bailey moved to become the Governor of the Bank of England , it was announced that Christopher Woolard would become the Interim Chief Executive. In June 2020, it was announced that Woolard would be succeeded on a permanent basis by Nikhil Rathi . In June 2012, it was confirmed that John Griffith-Jones would become the non executive chair of
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