Small-Business Financing – Listing Act

AMAFI teamed up with the French Association of Securities Professionals (AFTI) and the French Banking Federation (FBF) to respond to the European Commission’s consultation on the Listing Act, which seeks to make European capital markets more attractive to companies and simpler for small and midsized enterprises, or SMEs (AMAFI / 22-12). Specifically, the goal, set within the framework of CMU, is to facilitate companies’ access to markets, while ensuring a high level of investor protection.

AMAFI’s feedback stressed the importance of promoting liquidity and hence of maintaining stringent investor disclosure standards, promoting research, (including sponsored research), and alleviate product governance obligations for ordinary shares. The reason is that these requirements make it harder for investors to finance the economy, while offering no real benefits in return. Importantly, AMAFI also reiterated the importance of legislative stability at a time when markets are being called on to provide long-term financing. Any new legislative intervention must be strictly calibrated to its objectives.