FESE members are pleased to have the opportunity to contribute to this public consultation on the review of the Prospectus Directive.

When companies reach a stage in their development at which a public listing becomes an option it is critical that these issuers have options which are tailored to their conditions. Many FESE Members offer both Regulated Markets and Multilateral Trading Facilities (MTFs) options to companies seeking access to capital through a public market listing. A listing on the Regulated Market requires compliance by the issuer with a full set of disclosure requirements as mandated by the Prospectus, Transparency and Market Abuse frameworks as well as adoption of full IFRS. As an alternative, listing on MTF markets generally requires no / or a simplified disclosure document in terms of admission to trading and provides issuers (among other things) with the flexibility to opt for either local GAAP or full IFRS. Issuers can choose the market they want to list on taking into consideration the (ongoing) requirements for such listing and the investors’ base. Once listed on these MTFs, there is always the option for an issuer to move to the main Regulated Market at the appropriate stage of its development. FESE strongly believes that this flexibility should be maintained within the prospectus regime.

For further details, please see our response here.