The prospectus-related provisions of the Companies (Amendment) Ordinance 2004 will come into effect on December 3.

The Financial Services & the Treasury Bureau said the provisions will help ease compliance burdens and accommodate new offering structures and methods, enhancing flexibility and versatility in issuance activities in the local capital market, yet keeping with the regulatory perspective.

Major improvement measures contained in the ordinance include exempting 12 types of offers from the prospectus regime, such as offers to 'professional investors' and offers to not more than 50 people.

The changes to the prospectus regime are the second of a three-phase exercise to review the regulatory framework for offers of shares and debentures, which has been endorsed by the Financial Secretary as one of the initiatives to facilitate market development and the introduction of new products.

The commencement notice was gazetted today and will be tabled at the Legislative Council on October 13.

The Companies (Amendment) Ordinance 2004, passed by the council in July, contains legislative amendments to improve the prospectus regime and registration requirements for overseas companies, and to enhance shareholder remedies.

Provisions on overseas companies and shareholder remedies will be brought into operation next year after the necessary court rules, a fee order and enhancements to the Company Registry's computer system have been made.