Why didn’t the summary within the prospectus mention the Euroclear / Clearstream restriction or that coupon payments would be suspended for two years?
The prospectus includes a summary which is required to convey the essential characteristics and risks associated with the issuer and the securities. Rule 2.1.7R of the Prospectus Rules requires that the summary should include a warning to the effect that any decision to invest in a security should be based on consideration of the prospectus as a whole by the investor. The prospectus issued by Lloyds included such a warning on page 7. Civil liability for a prospectus may arise under FSMA or the general law. Section 90 of FSMA states that those responsible for a prospectus are liable to pay compensation to a person who has bought securities (to which the prospectus applies), and suffered losses following omissions that should have been included, or untrue or misleading statements in the prospectus. Section 90(12) of FSMA states a person must not be subject to civil liability only on the basis of a prospectus’s summary unless the summary is misleading, inaccurate or inconsistent when read
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