Trouble viewing this email? Read it online


cummings-logo-2013 (2).jpg
 


Welcome to EQUITY ISSUES, a short note on a relevant issue in the private equity and venture capital industry.

If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.  

claire-cummings.jpg

Claire Cummings

020 7585 1406

claire.cummings@cummingslaw.com
www.cummingslaw.com


 

EQUITY ISSUES

Market Abuse Regulation and Prospectus Regulation:
Commission proposals for SME growth market reform 

On 24 May 2018, the European Commission published a proposed regulation to amend both the Market Abuse Regulation and the new Prospectus Regulation in relation to the promotion of the use of SME growth markets. The initiative forms part of the Commission's 2015 Capital Markets Union action plan and stems from the objective of broadening SME access to sources of financing other than from banks.

The Commission's proposals include:

  • Removing the obligation for an SME growth market issuer to document the reasons for delaying disclosure of inside information under Article 17 of MAR, unless so requested by the competent authority. The competent authority would not be able to require the issuer to keep a record of that explanation. The issuer would however still have to notify the competent authority that it had delayed disclosure.

  • Providing that Article 18 of MAR would require an SME growth market issuer to keep an insider list, but that such list need only include the details of those persons with regular access to inside information due to their function or position within the issuer. Such a list would only have to be provided to the competent authority on request.

  • Amending Article 19 to grant an SME growth market issuer two days to make public the details of a manager's transaction after the date it receives notification of such transaction from the relevant PDMR (or PCA).

  • Extending the simplified prospectus regime (currently only applicable to secondary issues under Article 14 of the new Prospectus Regulation) to an issuer that has had securities admitted to trading on an SME growth market for at least three years and that is now seeking admission to trading of new or existing securities on a regulated market.

The amendments would extend to all issuers with securities admitted to trading on an SME growth market, not just those that qualify as SMEs.

The proposed regulation now passes to the European Parliament and the Council for discussion.

 

This document is for general guidance only. It does not contain definitive advice.


block-divider.jpg

We   have taken great care to ensure the accuracy of this version of Equity Issues.   However, Equity Issues is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the   information it contains. No responsibility can be taken for any loss arising from, action taken or refrained from on the basis of this publication. If you   would like to be removed from the mailing list of this publication please click unsubscribe below. Nothing within this communication may be copied, reprinted or similar withou prior written consent. 

Authorised  and regulated by the Solicitors Regulation Authority. Please contact us if you would like to arrange a meeting. This message (including any attachments) from the law firm of Cummings is confidential and may contain information which is proprietary, privileged or otherwise legally protected against unauthorised use or disclosure. If you are not the intended recipient, please do not read, copy, distribute, disclose or otherwise use or place any reliance on any information in this message or any attachments; and please alert the sender by return e-mail, delete this message and any attachments from your system and destroy any hard copies. Neither Cummings nor the sender accepts liability for any corruption, interception or unauthorized amendment of messages or attachments transmitted by e-mail. It is your responsibility to scan this message and any attachments for computer viruses in accordance with good working practice. The firm is not authorised by the Financial Conduct Authority, but is authorised and regulated by the Solicitors Regulation Authority (for the code of conduct please see www.sra.org.uk/rules) and undertakes certain activities in relation to investments which are limited in scope and incidental to its legal services or which may reasonably be regarded as a necessary part of its legal services.

Cummings

Tel: + 44 20 7585 1406
Mob: + 44 7734 057 327

Cummings Law
42 Brook Street
London Greater London W1K 5DB
United Kingdom

www.cummingslaw.com

14 12 2018

 
 

Subscribe a friend | Unsubscribe

 

 

email sent by multimail

REPORT ABUSE