Key data
| Regulation | Commission Delegated Regulation (EU) 2026/773, of 4 March 2026 |
|---|---|
| Amended regulation | Delegated Regulation (EU) 2019/980 |
| Publication | 15 June 2026 |
| Entry into force | Not specified in the published regulation |
| Affected parties | Listed companies, SME securities issuers, legal and financial advisors, stock market supervisors |
| Category | European Regulation |
| Affected prospectuses | EU follow-on prospectus and EU growth prospectus |
If your company is listed or plans to issue securities in European markets, the cost and time to prepare the information prospectus has just been reduced. The Delegated Regulation (EU) 2026/773, published on 15 June 2026, amends Delegated Regulation (EU) 2019/980 and simplifies two key instruments: the EU follow-on prospectus and the EU growth prospectus.
The change is not cosmetic. Less mandatory content means fewer hours of legal and financial work, and standardized formats mean faster reviews by national supervisory authorities. For SMEs, which have historically found prospectus costs to be a barrier to entry into capital markets, this reform can open a real alternative financing channel.
What does this regulation establish?
The regulation acts on two types of prospectuses with very different issuer profiles:
| Type of prospectus | Aimed at | Change introduced |
|---|---|---|
| EU follow-on prospectus | Already listed issuers making new issuances | Reduction of required content and standardization of format and sequence |
| EU growth prospectus | SMEs and expanding companies accessing capital markets | Reduction of required content and standardization of format and sequence |
The standardization of format aims to improve comparability and readability for investors, both retail and professional. By having all prospectuses follow the same structure and sequence, investors can compare issuances more easily, which in theory promotes more efficient capital allocation.
The reduction of mandatory content is the change with the greatest operational impact: fewer sections to draft, less information to verify, and less documentation to submit to the supervisor. This translates directly into lower preparation costs and shorter approval times from national supervisory authorities.
Economic and operational impact
The preparation of an issuance prospectus is one of the most significant costs in the process of going public or issuing new securities. Legal advisors, auditors, investment banks, and the company's own management team are involved for weeks or months. Any reduction in mandatory content translates directly into savings in professional fees and internal management time.
The specific effects introduced by this regulation are:
- Lower prospectus preparation costs, as the volume of mandatory information that must be drafted and verified is reduced.
- Shorter approval timelines from national supervisory authorities, as there is less content to review.
- Greater comparability for investors thanks to standardized format and sequence, which can facilitate capital raising.
- Incentive for more SMEs to access capital markets as an alternative to bank financing, as the documentary and economic barriers to entry are reduced.
The impact is particularly relevant for SMEs and expanding companies using the growth prospectus, as this instrument was designed precisely to facilitate their access to European markets, and the simplification reinforces that objective.
Who does it affect?
- Listed companies making new securities issuances and using the EU follow-on prospectus.
- SMEs and expanding companies seeking to finance themselves in European capital markets through the EU growth prospectus.
- Legal and financial advisors who prepare and review issuance prospectuses: they will need to adapt their templates and processes to the new standardized format.
- National stock market supervisors (in Spain, the CNMV) who approve prospectuses: their review processes will be affected by the new format and reduced content volume.
- Retail and professional investors who analyze prospectuses to make investment decisions, who will benefit from more comparable and readable documents.
Practical example
Imagine a Spanish technology SME that has been expanding for three years and wants to raise 5 million euros in a European growth market (such as BME Growth). Until now, preparing the EU growth prospectus involved an extensive process: drafting detailed mandatory content sections, coordinating with legal and financial advisors for weeks, and waiting for CNMV approval.
With the new Delegated Regulation (EU) 2026/773, that same SME presents a prospectus with less mandatory content and in a standardized format that the supervisor already knows and can review more efficiently. The result: lower external advisory fees, less internal management team time, and a faster supervisory approval process. Capital market financing becomes more competitive compared to a traditional bank loan.
What should companies do now?
- Identify whether your company uses or plans to use one of the two affected prospectuses (follow-on prospectus or growth prospectus). If so, this regulation directly affects you.
- Review with your legal or financial advisor the new standardized templates and formats established by Delegated Regulation (EU) 2026/773, to update internal working models.
- Renegotiate advisory budgets for future issuances, as the reduction in mandatory content should translate into a reduction in professional fees.
- If you are an SME that has so far ruled out capital markets due to prospectus costs, reassess this option: regulatory simplification may have changed the cost-benefit equation in your favor.
- Stay alert to the entry into force date, which has not been specified in the published regulation. Consult the official source on EUR-Lex to find out when the new requirements become mandatory.
Frequently asked questions
What is the EU follow-on prospectus and who must use it?
It is the information document that must be prepared by issuers already listed on stock exchanges when they make new securities issuances. Delegated Regulation (EU) 2026/773 reduces its mandatory content and standardizes its format and sequence, which reduces costs and supervisory approval timelines.
What is the EU growth prospectus and how does it help SMEs?
It is a simplified type of prospectus designed to allow SMEs and expanding companies to access European capital markets with lower documentary burdens. With the new regulation, its mandatory content is reduced even further and its format is standardized, making capital market financing more competitive compared to traditional bank financing.
When does Delegated Regulation (EU) 2026/773 enter into force?
The entry into force date has not been specified in the regulation published on 15 June 2026. It is necessary to consult the complete text in the official EUR-Lex source to know the exact application timeline.
What regulation does Delegated Regulation (EU) 2026/773 amend?
It amends Delegated Regulation (EU) 2019/980. The specific changes affect the required content and the standardized format and sequence of the EU follow-on prospectus and the EU growth prospectus.
What should legal and financial advisors do in response to this change?
They should update their templates and working models to the new standardized format established by the regulation. They should also inform their issuer clients (listed companies and SMEs) that the prospectus preparation and approval process will be more agile and potentially less costly from the entry into force of the regulation.
Official source
View complete regulation at official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, please consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202600773