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Such a distinction requires the continued application of the principle that admission to trading on a MTF, as opposed to admission to trading on an RM or a public offer, does not trigger the obligation to publish a prospectus. Furthermore, FESE does not support the proposal of what is called a «proportionate» regime for SMEs. This requires the continued application of the principle that admission to trading on an MTF, as opposed to admission to trading on an RM or a public offer, does not trigger the obligation to publish a prospectus. Furthermore, FESE does not support the proposal of what is called a «proportionate» regime for SMEs.
SME Markets
FESE does not support the proposal of what is called a “proportionate” regime for SMEs. While the concept of proportionality sounds benign, the effect would not be positive. FESE supports the maintenance of a distinction between Regulated Market and MTF coupled with one set of rules for RMs. FESE firmly believes that this distinction ensures that SMEs have the necessary choice as to where to raise capital, depending on their needs, expected benefits and level of evolution. Once they choose RMs, they should be subject to the same rules as all other companies.
European Central Bank data on SMEs
There are 20 million SMEs in Europe. According to the ECB survey, access to finance is one of their top problems. When they do access external finance, many of them go to banks. Capital markets are a viable option for only a sub‐set of them. However, even though the number of such small companies is only a small proportion of the total SMEs, the ability to tap capital markets is a very important tool for the growth of small companies. There is a logical evolution of the needs/abilities of SMEs’ finance from banks to private equity funds/venture capital to MTFs to RMs. Policy must ensure that this ‘financing ladder’ continues uninterrupted.