The Future Financing Act [Zukunftsfinanzierungsgesetz] for Germany comes at the right time. Against the backdrop of dramatically changing conditions, it serves to safeguard prosperity by promoting private investment, among other things. The recently presented key points paper marks the beginning of the legislative process that is now about to start.
The key points paper places particular focus on IPOs and a relaxation of the legal framework for Special Acquisition Companies (SPAC) and other, modern forms of equity financing. By raising equity capital, start-ups, growth companies, and small and medium-sized enterprises (SMEs) are to strengthen their performance.
Concrete measures and implementation proposals are still pending. However, the key points paper shows that strategic adjustments and realignments are now being considered. Whether the law will be a big hit naturally remains to be seen.
The article provides an overview of the measures contained in the key points paper with reference to financial market regulation.