In March 2015, following the release of the European Commission’s Green Paper on the Capital Markets Union, the European IPO Task Force published “the EU IPO Report: Rebuilding IPOs in Europe; Creating jobs and growth in European capital markets”.
The report, created by a task force of experts from EuropeanIssuers, the European Private Equity and Venture Capital Association and Federation of European Securities Exchanges, identifies five points of actions:
- Create a more balanced and flexible regulatory environment for small and mid-cap quoted companies, also known as “Emerging Growth Companies”;
- Ease constraints that restrict investors’ access to IPO markets and to invest in venture capital / private equity;
- Improve the market ecosystem to better serve companies at different stage of growth and different types of investors;
- Create an equity culture in Europe, including education and non-legislative initiatives;
- Improve tax incentives for investment into IPOs and in equity more generally.
Crowdfuding is also mentioned in the publication as a source of capital available to European SMEs at an earlier stage of growth and the authors are in favor of “a simplified prospectus regime for smaller companies which could possibly apply to crowdfunding as well”.
ECN welcomes the work of the IPO Task Force and is working with the members of the IPO Task Force to help foster the funding environment for SMEs across Europe.
See the full report here.