A prospectus must be “easily analysable and comprehensible”: Prospectus Directive, Article 5.1.

The Financial Conduct Authority has issued guidance on how to achieve this when drawing up a prospectus for a non-equity bond, for retail investors.

The 3-page guide focuses on language, navigation and signposting, and explaining the bond’s features, protections, risks and return on investment. It suggests using FAQs and diagrams and avoiding defined terms and jargon. It advises issuers to explain even basic terms such as “secured” and “subordinated”.

But this guidance makes an exception for the terms and conditions, which need not be translated out of their original language.

UKLA Technical Note: Non-equity prospectuses aimed at retail investors, 27 November 2014

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