Regulation (EU) 2021/337 amending Regulation (EU) 2017/1129 as regards the EU Recovery prospectus and targeted adjustments for financial intermediaries and Directive 2004/109/EC as regards the use of the single electronic reporting format for annual financial reports, to support the recovery from the COVID-19 crisis

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Series Details L 68, Pages 1-13
Publication Date 26/02/2021
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Summary:

Regulation (EU) 2021/337 - signed by the co-legislators on 16 February 2021 - introducing a number of amendments to Regulation (EU) 2017/1129 and to Directive 2004/109/EC. This is a text with EEA relevance.

Further information:

Regulation (EU) 2017/1129 lays down requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market situated or operating within a Member State. Directive 2004/109/EC requires the publishing og periodic financial information on income throughout the financial year, in addition to continuous information concerning the possession of significant percentages of voting rights.

This proposal for this Regulation aimed at the creation of an EU Recovery Prospectus - a type of short-form prospectus - for companies that have a track record in the public market. This temporary prospectus would be easy to produce, read and scrutinise by stakeholders. It would cut down the length of prospectuses from hundreds of pages to just 30 pages. A second set of amendments aims at facilitating fundraising by banks that play an important role in financing the post-pandemic economic recovery. Additionally, considering the constraints on issuers' resources due to the the COVID-19 (coronavirus) pandemic, a Member States should be able to postpone the application of the requirement to prepare and disclose annual financial reports using the single electronic reporting format by one year.

The draft was adopted by the Commission on 24 July 2020 as part of the so-called EU Capital Markets Recovery Package. The Council of the European Union adopted its general approach on 16 October. The plenary of the European Parliament adopted a negotiating position on 25 November. An informal agreement between the co-legislators on a compromise text was reached on 9 December. Following its formal endorsement by the European Parliament and the Council of the European Union (15 February 2021), the Act was signed by the co-legislators on 16 February 2021 and published in the Official Journal on 26 February 2021.

Source Link http://data.europa.eu/eli/reg/2021/337/oj
Related Link(s)
Commentary and Analysis
Fieldfisher: Insights, 05/08/2020: COVID-19 EU Recovery Prospectus – a new simplified disclosure regime prospectus https://www.fieldfisher.com/en/insights/covid-19-eu-recovery-prospectus
EPRS: Briefing, November 2020: Prospectuses for investors – Simplifying equity-raising during the pandemic https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)659350
EPRS: At a Glance, February 2021: Capital markets recovery package: MiFID and EU recovery prospectus https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)679075

Official
EUR-LEX: COM(2020)281: Proposal for a Regulation amending Regulation (EU) 2017/1129 as regards the EU Recovery prospectus and targeted adjustments for financial intermediaries to help the recovery from the COVID-19 pandemic https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:281:FIN
EUR-Lex: SWD(2020)281: Staff Working Document accompanying the Proposal https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:120:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on EU Recovery prospectus and targeted adjustments for financial intermediaries to help the recovery from the COVID-19 pandemic (2020/0155(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0155(COD)
European Parliament: Legislative Train Schedule: EU recovery prospectus and targeted adjustments for financial intermediaries to help the recovery from the COVID-19 https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-eu-recovery-prospectus/01-2021
European Commission: Publications: Coronavirus response: How the Capital Markets Union can support Europe’s recovery https://ec.europa.eu/info/publications/200722-proposal-capital-markets-recovery_en
European Commission: Press Release, 24/07/2020: Coronavirus response: Making capital markets work for Europe's recovery https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1382
European Commission: Coronavirus response: How the Capital Markets Union can support Europe's recovery (24 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1377
Renew Europe Group: News, 10/12/2020: Renew Europe supports simple and transparent financial rules to boost post-COVID recovery https://reneweuropegroup.eu/en/news/1740-renew-europe-supports-simple-and-transparent-financial-rules-to-boost-post-covid-recovery/
Council of the European Union: Press Release, 15/02/2021: Capital Markets Recovery Package: Council adopts first set of measures to help companies access funding https://www.consilium.europa.eu/en/press/press-releases/2021/02/15/capital-markets-recovery-package-council-adopts-first-set-of-measures-to-help-companies-access-funding/

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