Consultation response

20 May 2015

FEE comments on the review of the Prospectus Directive

In light of creating a single market for capital, the Commission launched a consultation on the Prospectus Directive. This review aims to make it easier for companies (including SMEs) to raise capital throughout the EU while ensuring effective investor protection. The expertise of the accountancy profession in ensuring appropriate and transparent corporate reporting is instrumental to this objective.

FEE has thus commented on this consultation with the following main points:

  • Quantitative criteria do not suffice in assessing if a full prospectus is required for a public offering. Therefore, we urge the Commission to consider introducing qualitative criteria as well and address assessing the level of protection the target audience for a prospectus needs.
  • “Incorporation by reference” should be allowed. This means that issuers can include information that is already publicly available in the prospectus by referencing to it, instead of duplicating this information.
  • Broader use of  International Financial Reporting Standards (IFRS), for entities listed on Regulated Markets or Multilateral Trading Platforms (MTFs), could diminish the information asymmetry between companies and investors. This could be achieved through ongoing simplification of recognition and measurement requirements in IFRS, and reduced disclosures through the completion of the IASB Disclosure Initiative.
  • Applying IFRS in this manner would increase transparency so there is no need to require full prospectuses for entities seeking to raise finance on MTFs. Such a prospectus requirement would add such costs for SMEs ‘going public’, that this may hinder their ability access to finance.

Related files:

FEE comment letter on the review of the Prospectus Directive

More Information:

EC Consultation on the Review of the Prospectus Directive

FEE comments on the Public Consultation on Building a Capital Markets Union



Related content

Consultation responseEC’s Proposal for directive on faster and safer relief of excess withholding taxes

9 August 2023

Consultation responseEC’s consultation on new EU system for withholding taxes

17 June 2022

Consultation responseEC’s consultation on Listing Act: support for ambitious simplified SMEs prospectus

3 February 2022

NewsCall for dialogue: assessment of SMEs’ post-COVID financial health

19 July 2021

NewsAccountancy Europe supports new EU plan to improve SMEs’ access to finance

26 March 2021

InterviewRemoving barriers to support SMEs: the CMU initiative

11 March 2021

NewsSMEs count on us

11 March 2021

NewsSupporting SMEs’ access to COVID support funding via professional advice

4 December 2020

Podcast The European Commission’s take on ESEF

30 October 2020

Consultation responseEC’s consultation on the renewed sustainable finance strategy

15 July 2020

NewsEquity: the key to unlocking a sustainable economic recovery

2 July 2020

EventEquity: the key to unlocking a sustainable economic recovery

2 July 2020

Consultation responseEC’s consultation on a new digital finance strategy for Europe/FinTech action plan

30 June 2020

PublicationEuropean IPO Report 2020

6 March 2020

EventEuropean IPO Report 2020 launch event

2 March 2020

EventCapital Markets Union 2024

12 November 2019

PublicationHow to secure financing for SMEs?

30 September 2019

PublicationSimplifying withholding tax procedures

2 May 2019

Update SME

8 April 2019

PublicationThe Business Insolvency Directive

28 March 2019

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?