European regulators issued new guidance in light of changes to the rules designed to drive more companies to go public by reducing the compliance burden of being a public company.
Last November, legislation was adopted that aims to promote access to listing on public markets, particularly for small- and medium-sized enterprises (SMEs), by simplifying the listing requirements to reduce the compliance burden on these companies.
Now, the European Securities and Markets Authority (ESMA) has published a paper detailing its advice to policymakers, the European Commission, on complying with various rules — including the Market Abuse Regulation and the Market in Financial Instruments Directive (MiFID) — given the changes to the listing rules.
Among other things, the guidance provides the regulators’ input on how to deal with public disclosure requirements during protracted processes, such as a long-running takeover battle; setting the conditions for when public disclosure can, and can’t, be delayed; addressing conflicts with previous disclosures; and identifying trading venues with significant cross-border trading activity.
It also includes guidance on the requirements for venture markets (known as growth markets for SMEs); and on the requirements on multiple vote share structures.
The EC is required to finalize reforms that are needed by the changes to the listing rules by July 2026.