Equity capital of at least
€250,000
The unregulated market is open to issuers with an equity capital of at least
€250,000. The publication and reporting requirements are less arduous than
those for regulated market quote holders. Issuers fall into two categories, first
and second quotations.
Applicants for a first quotation must publish a
prospectus meeting EU standards and otherwise satisfy the requirements of the
stock exchange (and of the Federal Financial Supervisory Authority) as to the
financial standing and past history of the company. This is referred to as the
“entry standard” as distinct from the prime and general standards of the
regulated market. Companies with an existing quote on another stock exchange
automatically fall into the second category. In this case, there is no need for a
further prospectus, and otherwise the compliance requirements are greatly
eased with the acceptance by the German authorities of effective supervision in
the company’s home country. This acceptance is automatic where the first quote
is on a recognised market within the EU and is largely a formality where the
first quote is in the USA or Japan. However, first quote holders from other
countries will need to satisfy the German stock exchange that they meet
standards of transparency and governance in their home countries that are at
least as rigorous as those of the EU.
Foreign companies may meet all stock market filing and publication
requirements in English. Financial statements and disclosures may follow
IFRS or US GAAP.
EU Forecast
euf:ba18e:45/nws-01