On Thursday the Plenary held the final vote on provisions that help EU companies to access a diverse range of funding and support the post-COVID-19 recovery.
Targeted adjustments to the Markets in Financial Instruments Directive (MIFID II) were adopted with 339 votes in favour, 294 against and 57 abstentions. They remove 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.
Markus FERBER (EPP, DE), the lead negotiator, said during the debate on Wednesday:”Our obligation, as a legislator is to make sure there is a support for companies. The targeted adjustments in the MiFID II Quick Fix will make it easier for them to tap into financial markets. We will get rid of red tape for investment firms, while still protecting investors. We have also got rid of some regulatory obstacles in the market for commodity derivatives. This will be particularly helpful for innovative clean energy contracts that are vital for the energy transition and the Green deal”.
Changes to the Prospectus Regulation, which, create a temporary, short-form “EU recovery prospectus” (until 31 December 2022), were adopted with 585 votes to 50 and 55 abstentions. 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.
Ondřej KOVAŘÍK (Renew, CZ), the lead negotiator said: “I am very happy with the support for the Recovery Prospectus in today's vote. It will cut costs by up to 50% for those eligible and help businesses re-capitalise without putting investor protection and transparency at risk.”
Both sets of rules belong to the Capital Markets Recovery Package, which is part of the EU’s overall COVID-19 recovery strategy.
Adopted texts will be available here (11.02.2021).