Council adopts rules for listing on European stock exchanges

The Council adopted the listing act, a legislative package that will make EU public capital markets more attractive for EU companies and facilitate the listing of companies of all sizes, including small and medium-sized enterprises (SMEs), on European stock exchanges. This marks the final step in the decision-making process.

Mihály Varga, Hungarian minister of finance stated that “the adoption of the listing act will simplify the regulatory landscape. We will create more opportunities for businesses to grow and access capital, while ensuring investor protection and market integrity. This is a concrete contribution to the success of the Capital Markets Union, and I am confident it will have lasting positive effects on European economies“.

The measures seek to streamline the rules applicable to companies going through a listing process or companies already listed on EU public markets. The aim is to simplify the process for companies by alleviating administrative burdens and costs, while preserving a sufficient degree of transparency, investor protection and market integrity.

Easier access to public markets will allow companies, and SMEs in particular, to better diversify and complement available sources of funding.

A directive on multiple-vote shares was also adopted by the Council today. The directive introduces a framework to facilitate the issuance and use of multiple-vote shares. It aims to attract and retain high-growth companies in the EU while safeguarding shareholder protection.

Next steps

Following the Council’s adoption, the different measures of the listing act will be published in the Official Journal of the European Union and enter into force 20 days later. Member states will have 18 months to transpose the directive amending the markets in financial instruments directive into national legislation and two years to transpose directive on multiple-vote shares.

Background

On 7 December 2022, the Commission put forward the listing act package consisting of:

• a regulation amending the prospectus regulation, market abuse regulation and the markets in financial instruments regulation;
• a directive amending the markets in financial instruments directive and repealing the listing directive;
• a directive on multiple-vote shares.

Further information: European Council