Plain language guide for prospectuses
Write up of the content of the prospectus has moved from the legalistic approach to simpler plain English. Legal jargon and sentences that are too long should not hinder the intended audience’s understanding of information in the prospectuses.
In summary, the Plain Language Guide for Prospectuses highlights the common problems in the current styles and provides suggestions for the new style, i.e.,:
1. use personal nouns
2. draft clear and concise sentences
3. use common everyday words
4. avoid superfluous words
5. use active voice
6. change nouns to verbs
7. use less legal and financial jargon
8. use positive sentences and not multiple negatives
9. use defined terms sparingly, and
10. use an effective layout.