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The draft regulation is aimed at reducing one of the main regulatory hurdles that companies face when issuing equity and debt securities. It sets out to simplify administrative obligations related to the publication of prospectuses in a manner that still ensures that investors are well informed.
"This is an important reform that will help companies in need of finance to gain access to European capital markets", said Jeroen Dijsselbloem, minister for finance of the Netherlands and president of the Council. “The prospectus is an essential instrument for investors, but legal requirements must not create unnecessary barriers to raising capital." [...]
A reform of prospectus rules is amongst measures announced by the Commission under its 2014 “investment plan for Europe” with the aim of improving the business environment.
And it is a second major building block of the EU's 2015 plan to develop a capital markets union. In December 2015, the Council reached a similar agreement on proposals to facilitate the development of a securitisation market in Europe. The capital markets union is due to be fully functioning by the end of 2019. The aim is to strengthen the role of market-based finance, alongside bank finance, in the EU economy. [...]
The proposal establishes specific rules for four groups of issuers:
June 2016 draft regulation on the prospectus to be published for the trading of securities