The permanent representatives to the European Union on Wednesday approved the Council's standpoint regarding a proposal of facilitation of the access to financial markets of SMEs that seek to be listed on the stock exchange and issue securities, while guaranteeing at the same time the protection of investors and the integrity of the market, reads a release of the Council of the EU.
The initiative targets especially "SME growth markets," a category for which transaction spots have only recently been introduced, targeting the smaller issuers. Based on this text, the Romanian presidency will start negotiations with the European Parliament on March 6.
"SMEs bring the largest contribution to the creation of jobs and growth in Europe. However, they depend a great deal on the loans from the bank. Which is also the reason why it is essential to help the SMEs diversify their financing sources and that their access to the capital markets is facilitated and simplified," stated the Minister of Finance in Romania, Eugen Teodorovici.
Out of the 20 million SMEs in Europe, only 3,000 are listed on the stock exchange. This is due, in part, to the high compliance costs and, on the other hand, to the insufficient level of liquidity. Thus, the proposed norms are aimed at reducing the administrative tasks and reduce bureaucracy for the small enterprises.
The proposal includes modifications of the regulation regarding the abuse of market and prospect, which increase the proportional character and obligations imposed to issuers on the growth markets for SMEs, while maintaining at the same time especially the integrity of the markets: a more rationalized administrative encumbrance, which will maintain the integrity of the markets and the level of information provided to investors, especially in terms of the obligation of reporting regarding the persons who have access to information influencing the prices; as well as a "simplified "prospect," more adequate for the SMEs who were already listed on a growth market for SMEs.
The European Parliament voted on its standpoint with respect to the listing of the SMEs on December 7 2018. Therefore, negotiations between the Council and Parliament are ready to start.