Brussels, 29/03/2016 (Agence Europe) - The draft report by Philippe De Backer MEP (ALDE, Belgium) on the proposed regulation modifying the rules regarding the prospectuses to be published by European companies wishing to raise capital, to provide potential investors with information, increases the scope of the exemptions for SMEs.
The Commission proposed exemptions from the obligation to publish a prospectus for issuances of less than €500,000. De Backer has increased this threshold to €1 million.
The draft report also includes a new element for small issuances: the use of an “EU Growth Prospectus”. For issuances of less than €20 million, this prospectus will set in place a lighter European regime which can be 'passported' across the EU.
As regards the summary of the prospectus, the draft report states that it should include a warning regarding the extent of the potential financial losses for investors in the worst-case scenario. As he indicated in an initial exchange of views at the parliamentary committee, De Backer has revised the 'third countries' regime, removing the obligation to appoint a representative in a member state. The regime would instead be based on cooperation with the competent authorities. The examination of the draft report will take place on 7 April. (Original version in French by Elodie Lamer)