European Parliament Adopts MIF Regulation
On March 10, the European Parliament published a press release announcing that it has adopted the proposed Regulation on interchange fees for card-based payment transactions (MIF Regulation). The adopted text has not yet been made publicly available.
Among other things, the MIF Regulation is intended to lead to transparent fee-capping for cross-border and domestic retail purchases. It is hoped that the lower costs will benefit retailers and shoppers.
The MIF Regulation now needs to be formally adopted by the Council. The press release states that the MIF Regulation should apply six months after its entry into force. Press Release.
European Parliament Adopts ELTIF Regulation
On March 10, the European Parliament published a press release announcing that it has adopted the proposed Regulation on European Long-Term Investment Funds (ELTIF Regulation). The adopted text has not yet been made publicly available.
ELTIFs are vehicles designed to boost non-bank investment in the real economy across the EU. ELTIF investment funds will have to apply for authorisation, have a regulated structure and comply with uniform rules to ensure that they offer long-term and stable returns. ELTIF investors will have to make a long-term commitment as they will not be able to withdraw their money easily. However, to protect retail investors, the Parliament and the Council of the EU agreed "redemption" rules that would enable an ELTIF that has enough liquid assets to return an investor's money at the investor's request.
The ELTIF Regulation now needs to be formally adopted by the Council. The press release states that the ELTIF Regulation should apply six months after its entry into force. Press Release.
Prospectus Directive: Commission Consultation
On February 18, 2015, the European Commission published a consultation paper on the review of the Prospectus Directive (2003/71/EC). Matters on which the Commission seeks views include:
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When a prospectus is needed. In particular, views are sought as to whether the current exemption thresholds should be adjusted so that a larger number of offers can be carried out without a prospectus; whether there should be an exemption for secondary issues under certain conditions, in addition to the proportionate disclosure regime for rights issues; and whether a prospectus should be required when securities are admitted to trading on an MTF.
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The information that a prospectus should contain. Questions include whether the proportionate disclosure regime should be modified or extended; whether there should be a simplified prospectus for SMEs and companies with reduced market capitalization admitted to trading on an SME growth market; and whether there should be a maximum length for prospectuses.
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How prospectuses are approved, including the role of national competent authorities in the approval process of prospectuses and the equivalence of third-country prospectus regimes. In particular, the Commission asks whether the scrutiny and approval procedure should be made more transparent to the public and flexible for issuers, for example by making public the first draft prospectus filed with a competent authority for review and by allowing the issuer to carry out certain marketing activities, going beyond advertising, in the period between the first submission of a draft prospectus and the approval of the final version.
Responses must be received by May 13, 2015. The Commission intends to decide in the next months how the Prospectus Directive should be amended. It plans to prepare amendment proposals in the second half of 2015, to be presented to the European Parliament and Council of the EU, together with its review of the application of the Directive, in early 2016 at the latest.
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