|Author (Corporate)||European Commission: DG Financial Stability Financial Services and Capital Markets Union|
|Series Details||COM (2020) 281|
|Content Type||Blog, News, Policy-making|
Legislative initiative tabled by the European Commission on 24 July 2020, introducing a number of amendments to Regulation (EU) 2017/1129 on accessing different forms of finance in the European Union (EU).
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.
This proposal aims to create 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.
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.
|Subject Categories||Business and Industry, Economic and Financial Affairs|
|Subject Tags||Capital Markets Union [CMU], Financial Services|
|International Organisations||European Union [EU]|