The European Commission ("EC") proposed a Capital Markets Recovery Package (the "Package") aimed at supporting European businesses during the recovery process from COVID-19.
Under the Package, the EC included targeted adjustments to:
- Prospectus Regulation. The EC proposed a short-form prospectus, the "EU Recovery Prospectus," for companies that have track records in the public market. The EC proposal would minimize the length of prospectuses from "hundreds of pages to just 30 pages" to make the documents "easy to produce for companies [and] easy to read for investors," and to help companies raise capital quickly.
- MiFID II. The EC proposed amendments that would reduce the number of "overly burdensome or hindering" administrative requirements under MiFID II while recalibrating other requirements to ensure transparency for market participants and reduce compliance costs for companies. The EC also noted that the proposal would amend MiFID rules governing energy derivatives markets in order to (i) facilitate the growth of euro-denominated energy markets, (ii) help European companies cover their risks and (iii) protect commodity markets (i.e., agricultural products).
- Securitization Rules. The EC proposed amendments aimed at utilizing securitization to enable banks to (i) expand their lending capabilities by providing the "STS" label for balance-sheet synthetic securitizations, and (ii) remove nonperforming exposures from balance sheets.
Cadwalader prepared the following Memorandum on the proposed amendments.
Primary Sources
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