Getting SMEs On IPO Financing Track

While the 'crypto hype' seems to have the finance industry firmly under its spell, the EU Commission is persistently continuing its goal to develop a more attractive regulatory framework supporting access to (classical) public funding for small and mid-sized enterprises (SMEs). In addition to the already implemented new rules aiming to boost market-based sources of financing for EU companies at each stage, two new legislative proposals were launched in May with a view to attract new SME issuers to EU capital markets. The overarching aim of the new proposals is to support access to public funding for SMEs in Europe.

The new proposal for a regulation regarding the promotion of the use of SME growth markets (currently referred to as COM (2018)331 final) will amend the existing Market Abuse Regulation (EU) 596/2014 (MAR) and the Prospectus Regulation (EU) 2017/1129 (Prospectus Regulation) and strike the right balance between investor protection and market integrity