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Supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council as regards the format, content, scrutiny and approval of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market
Article 37

Article 37 — Criteria for the scrutiny of the comprehensibility of the information contained in the prospectus

  1. For the purposes of scrutinising the comprehensibility of the information in a draft prospectus, competent authorities shall consider all of the following:
    1. whether the draft prospectus has a clear and detailed table of contents;
    2. whether the draft prospectus is free from unnecessary reiterations;
    3. whether related information is grouped together;
    4. whether the draft prospectus uses an easily readable font size;
    5. whether the draft prospectus has a structure that enables investors to understand its contents;
    6. whether the draft prospectus defines the components of mathematical formulas and, where applicable, clearly describes the product structure;
    7. whether the draft prospectus is written in plain language;
    8. whether the draft prospectus clearly describes the nature of the issuer’s operations and its principal activities;
    9. whether the draft prospectus explains trade or industry specific terminology.

    However, competent authorities shall not be required to consider points (g), (h) and (i) where a draft prospectus is to be used exclusively for the purposes of admission to trading on a regulated market of non-equity securities for which a summary is not required by Article 7 of Regulation (EU) 2017/1129.

  2. For the purposes of the first paragraph, competent authorities may, on a case-by-case basis and in addition to the information referred to in Article 7 of Regulation (EU) 2017/1129 and Article 33 of this Regulation, require that certain information provided in the draft prospectus be included in the summary.