This Directive aims to make public capital markets in the EU more attractive for companies and facilitate access to capital for small and medium-sized enterprises (SMEs). It amends Directive 2014/65/EU (MiFID II) and repeals Directive 2001/34/EC.The Directive introduces significant changes to the EU capital markets framework by modifying research unbundling rules, establishing new provisions for issuer-sponsored research, and updating requirements for SME growth markets.The main structural elements include:
- New rules on investment research and issuer-sponsored research, including establishment of an EU code of conduct
- Modified requirements for SME growth markets and their segments
- Updated conditions for admission of shares to trading on regulated markets
- Repeal of Directive 2001/34/EC and transfer of relevant provisions to MiFID II
Key provisions that may be most important for implementation:
- Removal of market capitalization threshold for bundling of research payments
- Requirement for investment firms to have organizational arrangements ensuring compliance with the EU code of conduct for issuer-sponsored research
- Reduction of minimum free float requirement from 25% to 10% for admission to trading
- New rules allowing segments of MTFs to apply for SME growth market status
- Requirements for issuer non-objection before trading on additional venues
