The changers introduce new measures for the application of Regulation 1129 of the European parliament and the council from 14th June, 2017. The previous Directive 2003/71 is now cancelled. The aim of the legislator is to alleviate the regime for the public offering of securities.
- The changes mainly refer to the prospectus. When the emissions are lower than EUR 3 million prospectus drafting and publishing will not be required, as well as its subsequent approval of thе Financial Supervision Commission (FSC). The prospectus will be replaced by a simplified document. This change is expected to have a positive effect on the access to funding for the small and medium-sized business, especially in the context of the current crisis with COVID-19.
- The definition of public undertaking is further specified.
A company shall becomes public when two conditions are present simultaneously. Firstly, the shares as issued need to be registered with the register of FSC with the aim of trading on a regulated market. and the emission to be accepted for trading on a regulated market.
- The definitions for various types of “issuers” are also precise in light of the different requirements for the persons, originating from the scope of the APOS and the pointed regulation. The act clarifies that “issuer” is a legal entity which issues or offers to issue securities.