Listing rules for public markets (Listing act)

Key points

The EESC:

• underlines that increased equity funding for European companies is key and therefore strongly welcomes the Listing Act proposed by the Commission;
• believes that bringing family-owned companies to capital markets would open up untapped potential to attract capital for growth, and a multiple-voting rights regime helps families to retain control, making listing more attractive to them. The EESC agrees that a detailed framework design should be produced at the national level, while encouraging high-level EU harmonisation;
• welcomes the Commission's initiative to streamline the contents of a prospectus that would significantly reduce costs and burden for issuers;
• welcomes the proposal to give issuers the choice to publish a prospectus in English only. However, publication of a full-scale document, and not only the summary, in national languages would empower local retail investors. Using "English-only" issuance documents would hinder the development of a national retail investment base;
• notes that bundling investment research with other services is likely to increase the visibility of listed small and medium-sized enterprises (SMEs). Therefore, the Committee welcomes the proposed increase in the unbundling threshold to EUR 10 billion; however, further measures to encourage independent research may also be needed;
• highly values the Commission's approach in mitigating legal uncertainty surrounding information disclosure requirements.