Florence Bindelle, Secretary General of EuropeanIssuers, said: “This revision is a step in the right direction. It will help to alleviate some burdens and costs for companies seeking to raise finance on public markets in Europe. Producing a prospectus is a big cost of and a clear deterrent to going public. We welcome proposals to reduce disclosure for secondary offers and SMEs, as well as allowing greater use of the incorporation of information into a prospectus by reference. We also welcome improved passporting arrangements to make it simpler for issuers to access markets across the EU.”
Ms. Bindelle added, “Nevertheless, we think that the Commission can be more ambitious in its proposals. The needs of the Emerging Growth Companies have not yet been properly addressed. A funding gap could well remain for those “middle range” companies that are not classified as SMEs, but at the same time do not have the necessary resources to meet the stringent requirements of the Regulated Markets.”
Despite many good initiatives in this proposal, EuropeanIssuers would like to see the Commission go further on:
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Recalibrating the thresholds triggering the application of the regulation;
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Ensuring freedom of movement and providing greater choice for companies through the revision of the home Member State definition. Companies should have the choice of their home Member State for all securities.
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Improving efficiency of the prospectus approval; and
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Creating a flexible, bespoke prospectus regime for companies on the newly created SME Growth Markets
Press release
EC´s legislative proposal
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