The Permanent Representatives Committee of the Council of the European Union confirmed agreement on 26 June 2026 on compromise texts of the Omnibus IV Regulation and Directive, extending certain mitigating measures originally designed for small and medium-sized enterprises (SMEs) to small mid-cap enterprises (SMCs) and introducing further simplifications. The agreement authorises the Presidency to send an offer letter to the European Parliament, initiating the formal legislative process.
The Omnibus IV package defines SMCs as enterprises that are not SMEs, employ fewer than 1,000 persons, and have an annual turnover not exceeding EUR 200 million or an annual balance sheet total not exceeding EUR 172 million, calculated according to Commission Recommendation 2025/1099 of 21 May 2025. The package amends several EU regulations and directives to extend SME-friendly rules to SMCs.
Under the General Data Protection Regulation (GDPR), the derogation from record-keeping obligations under Article 30(5) is extended to enterprises and organisations with fewer than 1,000 employees, unless the processing is likely to result in a high risk to data subjects' rights and freedoms. Public authorities and bodies are excluded from this derogation. In trade defence (Regulations (EU) 2016/1036 and 2016/1037), SMCs will benefit from a dedicated helpdesk and alignment of investigation periods with the financial year, maintaining the same service level as for SMEs. The Prospectus Regulation (EU) 2017/1129 is amended to enable SMCs to draw up an EU Growth issuance prospectus for public offers of securities, including when accompanied by admission to trading on a multilateral trading facility.
A new exemption from the prospectus obligation is introduced for securities resulting from conversion under Directive 2014/59/EU, Directive (EU) 2025/1, or comparable third-country resolution proceedings implementing the Financial Stability Board's Key Attributes. The Commission is required to report within five years from the entry into force on the application of the SMC definition, the reduction of administrative burden, and the impact on competitiveness.
The Omnibus IV package represents a significant policy development affecting multiple stakeholders. For small mid-cap enterprises, the extension of mitigating measures reduces compliance costs and administrative burdens, particularly in data protection, trade defence, and securities issuance. This could enhance their competitiveness and access to capital markets. For EU regulatory bodies, the new SMC definition and reporting requirement create additional monitoring obligations. National authorities may face increased workload in implementing the extended derogations and helpdesk services. For larger enterprises not qualifying as SMCs, the measures do not apply, potentially creating a regulatory gap. The bail-in prospectus exemption benefits financial institutions and investors by streamlining resolution procedures, but may reduce transparency for investors. Overall, the package balances simplification for smaller firms with maintaining regulatory safeguards, though the impact on data protection and investor protection will depend on implementation.
The Council's agreement now moves to the European Parliament for consideration. The offer letter sent to the Parliament outlines the compromise texts, and the legislative process will proceed under the ordinary legislative procedure. The package is expected to be adopted later in 2026, with most provisions applying directly in member states upon entry into force.