On 24 July 2020, the European Commission adopted a Capital Markets Recovery Package, as part of its overall coronavirus recovery strategy. The package contains targeted adjustments to the:
- Prospectus Regulation. The Commission is proposing certain targeted amendments to this Regulation to facilitate fundraising by banks that play an essential role in financing the recovery of the real economy. The Commission also plans to create an “EU Recovery Prospectus”, a type of short form prospectus for companies that have a track record in the public market.
- MiFID II. The targeted amendments the Commission is proposing have already been identified during the MiFID II / MiFIR public consultation as being overly burdensome or hindering the development of European markets. The Commission is proposing to recalibrate certain requirements to ensure that there is a high level of transparency towards the client, while also ensuring the highest standards of protection and acceptable compliance costs for European firms. In parallel, the Commission has opened a public consultation on amendments to the MiFID II delegated directive to increase the research coverage regime for small and mid-cap issuers and for bonds. The Commission is also proposing to amend the MiFID rules affecting energy derivatives markets.
- Securitisation rules. Among other things, the Commission proposes to create a specific framework for simple, transparent and standardised on-balance-sheet securitisation that would benefit from a prudential treatment reflecting the actual riskiness of these instruments. The Commission also proposes to remove existing regulatory obstacles to the securitisation of non-performing exposures.