Regulation 2021/337 - Amendment of Regulation (EU) 2017/1129 as regards the EU Recovery prospectus and targeted adjustments for financial intermediaries and Directive 2004/109/EC as regards the use of the single electronic reporting format for annual financial reports, to support the recovery from the COVID-19 crisis - Main contents

EN

Official Journal of the European Union

L 68/1

The COVID-19 pandemic is severely affecting people, companies, healthcare systems and the economies of Member States. In its Communication of 27 May 2020 entitled ‘Europe’s moment: Repair and Prepare for the Next Generation’, the Commission stressed that liquidity and access to finance will be a continued challenge. It is therefore crucial to support the recovery from the severe economic shock caused by the COVID-19 pandemic by introducing targeted amendments to existing Union financial services law. Those amendments form a package of measures and are adopted under the label ‘Capital Markets Recovery Package’.

Regulation (EU) 2017/1129 of the European Parliament and of the Council (3) lays down requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market situated or operating within a Member State. As part of the package of measures to help issuers to recover from the economic shock resulting from the COVID-19 pandemic, targeted amendments to the prospectus regime are necessary. Those amendments should enable issuers and financial intermediaries to reduce costs and free up resources for the recovery phase in the immediate aftermath of the COVID-19 pandemic. Those amendments should remain in line with the overarching objectives of Regulation (EU) 2017/1129 to foster fundraising through capital markets, ensure a high level of consumer and investor protection, drive supervisory convergence throughout the Member States, and ensure the proper functioning of the internal market. Those amendments should also specifically take full account of the extent to which the COVID-19 pandemic has affected issuers’ present situation and their future prospects.

The COVID-19 crisis makes Union companies, in particular small and medium-sized enterprises (SMEs) and start-ups, more fragile and vulnerable. Where appropriate in order to facilitate and diversify funding sources for Union companies, with a particular focus on SMEs, including start-ups and middle-capitalisation companies, the removal of unjustified barriers and excessive administrative burden can help to promote the ability of Union companies to access equity markets, in addition to promoting more diverse, longer-term and more competitive investment opportunities for retail and large investors. In that regard, this Regulation should also aim to make it easier for potential investors to learn about investment opportunities in companies, since potential investors often have difficulty evaluating start-up companies and small firms with a short business record, a situation which leads to fewer innovative openings, especially for persons starting a business.

Credit institutions have been active in the effort to support companies that needed financing and are expected to be a fundamental pillar of the...