4 April 2024 Article

CFA Institute and BETTER FINANCE Report on the Review of the Listing Rules in the EU

With input from FESE

  1. CFA Institute
This joint CFA Institute and BETTER FINANCE report (with input from the Federation of European Securities Exchanges) analyses the obstacles European companies face when seeking access to capital markets and obtaining funding through public markets.
Report on the Review of the Listing Rules in the EU View PDF


In light of the challenges that European companies (particularly small and medium-sized enterprises) face when trying to access public markets, European Union legislators have been discussing a new proposal amending the current EU listing rules, with the aim of enhancing the appeal of public markets and facilitating increased accessibility to capital for European firms.

To better understand what hurdles European companies encounter when seeking public funding, CFA Institute and BETTER FINANCE (the European Federation of Investors and Financial Services Users) conducted an informal survey with their respective European memberships. The survey is particularly pertinent to the listing rules that EU legislators have been currently negotiating. The Federation of European Securities Exchanges has contributed valuable insights related to the Listing Act legislative package, which aligns with the objectives of the aforementioned survey.

The points of convergence between the results of the CFA Institute and BETTER FINANCE surveys are as follows:

  • Multiple voting rights shares are considered either unnecessary to encourage listing or unsuitable to boost investor confidence.
  • The Prospectus Regulation would benefit from a review that would both reduce the regulatory burden and cost on issuers (standardisation, approval process) and facilitate investor information.
  • A single EU definition for small and medium-sized enterprises (SMEs) is difficult to reconcile with national markets’ specificities and needs.
  • SMEs need better coverage to address the lack of liquidity in SME growth markets while boosting investor participation.
  • SME growth markets should be the main scope of revised legislation, whereby listing costs need to be alleviated, in addition to aid package and improved cross-border information.
  • Financial education programmes should be provided through various channels and for all investors. Financial education is deemed necessary to increase knowledge of primary (and secondary) market participation.

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