The European Parliament and the Slovakian Presidency of the European Union last night reached a deal on a new prospectus regulation, an important step towards the creation of a Capital Markets Union.
The agreed new legislation will reduce the administrative burden of drawing up prospectuses for all issuers, in particular for SMEs, by permitting lighter, less burdensome prospectus, which also allow for passporting and encourage cross-border issuance.
The regulation will also make the prospectus a more relevant disclosure tool for potential investors, while safeguarding crowd-funding and unifying EU capital markets to deliver high levels of investor protection, which will create growth and jobs.
Petr Jezek, ALDE MEP and Parliament’s Rapporteur commented on the deal:
‘This is a strong signal from the European Union that we care about making a capital markets union a reality.
More funding, reduced costs and less burden – our EU Growth Prospectus will help start-ups and small companies grow and create jobs.
It’s a big step towards a true capital markets union’