Adam Farkas, Chief Executive of AFME, said: “Today’s package of proposals is a welcome step towards progressing the Capital Markets Union further, which is a vital project for supporting European capital markets, particularly in light of recent economic and geopolitical pressures.
The Association for Financial Markets in Europe (AFME) has today issued a comment in response to the European Commission’s latest package of measures on Capital Markets Union.
“On the Listing Act proposal, an attractive environment for Initial
Public Offerings (IPOs) and other capital raisings in public markets is
vital to support innovative, fast-growing companies, as well as an
expansion of Europe’s equity markets. A well-functioning IPO market is
also important in the pre-IPO environment as it impacts on exit
strategies and therefore the provision of risk capital. In order to
allow companies to access capital effectively, policy makers should
support measures that strengthen the competitiveness of EU markets in
order to improve the ability of all types of companies to raise funds on
European capital markets.
“AFME welcomes the focus on promoting multiple voting right share
structures. Subject to appropriate checks and balances, these structures
have the potential to attract founder-led high-growth companies looking
to list. Their promotion should however apply to all listing platforms
and not be limited to SME Growth Markets”.
“AFME looks forward to debating the proposals in the EU Listing Act,
including those in relation to the Prospectus Regulation, Market Abuse
Regulation and investment research. Features of the existing EU
framework that are unclear, inconsistent, disproportionately burdensome
on issuers and/or which fail to provide adequate reassurance to
investors should be addressed in this review. The proposals should
strike the right balance between the needs of issuers, investors and
participants providing diverse services such as underwriting and
market-making.”
AFME
© AFME
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