On Thursday 4 April, Better Finance, the European Federation of Investors and Financial Services Users, and CFA Institute, the US association of investment professionals, published the results of surveys of their members conducted between November 2022 and February 2023 on the EU rules governing the listing of companies on stock markets.
The stakeholders consulted stress the importance of better coverage for small and medium-sized enterprises (SMEs), believing that SME growth markets should be the main scope of the review of the ‘Listing Act’ legislative package, that listing costs need to be alleviated, in addition to the introduction of aid packages, improved cross-border information and financial education.
Multiple-vote share structures. The multiple voting rights shares structures of the ‘Listing Act’ are the main concern of retail investors. This corporate governance mechanism would enable managers of SMEs whose shares are floated for the first time to retain control over their companies. The details of this mechanism were agreed in a provisional revision agreement reached in February between the European Parliament and the EU Council (see EUROPE 13341/8).
With a vote in the European Parliament plenary expected to endorse the legislative revision on Monday 22 April, Better Finance CEO Aleksandra Mączyńska said it was “crucial that Member States implement strict safeguards and ensure comprehensive transparency throughout the investment chain to protect prospective shareholders”.
Link to the Better Finance and CFA Institute report: https://aeur.eu/f/bmf (Original version in French by Bernard Denuit)