Briefing 
 

COVID-19 recovery: Protecting investors while cutting red tape for firms 

Parliament will discuss and vote on provisions that help EU companies to access a diverse range of funding and support the post-COVID-19 recovery.

MEPs will hold final votes on targeted adjustments to the Markets in Financial Instruments Directive (MIFID II) and Prospectus Regulation, which should facilitate economic recovery by removing red tape for companies while at the same time protecting investors. Both sets of rules belong to the Capital Markets Recovery Package, which is part of the EU’s overall COVID-19 recovery strategy.

The agreement reached with Council on the Markets in Financial Instruments Directive (MIFID II) in December removes unnecessary administrative burdens while striking a balance between protecting investors and keeping compliance costs low for firms. The changes apply mostly to professional clients and eligible counterparties such as insurers, pension funds, or public institutions.

The deal reached with Council on the Prospectus Regulation creates a temporary, short-form “EU recovery prospectus” (until 31 December 2022). This simplified document presents information about a company and the securities that it offers to the public. It should help companies to raise the capital they need to rebuild their business quickly in the wake of the pandemic.

The debates will take place on Wednesday, and the result of the votes will be announced on Thursday. 

Procedure: ordinary legislative procedure, first reading agreement

2020/0152(COD) and 2020/0155(COD)

Debate: Wednesday, 10 February

Vote: Wednesday 10 February, result Thursday, 11 February