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Prospectus directive

EU agrees rules that will give SMEs easier access to capital markets

The European Parliament, the Council and the Commission agreed last night on a new set of rules to improve capital market prospectus requirements and ensure more informed investment decisions. A simpler, more accessible prospectus will help cut unnecessary red-tape and make it easier and cheaper for companies, especially small and medium-sized companies (SMEs), to raise money by issuing new shares or debt. The agreed text strikes a good balance between enabling companies to get the finance they need, while ensuring investors get the sort of clear, harmonised information they require to make informed investment decisions. The rules are expected to encourage more cross-border investment opportunities, which is essential for promoting jobs and helping Europe's economy to grow. The agreed text will now go to the European Parliament and the Council for a final vote.