PEA-PME

This share savings plan was adopted with the principle aims of diversifying companies’ funding sources and creating a new financing tool for small and mid-sized enterprises (SMEs).

  • Its deposit is capped at €75,000 per tax payer, and the terms and conditions of opening this new plan are identical to those that apply to the share savings plan;
  • Retail investors can hold their PEA-PME in a financial institution other than the one in which their PEA is held;
  • The PEA-PME benefits from the same tax advantages and rules as the original PEA.

The thresholds fixed for the eligibility of Companies to the PEA-PME are assessed as follows;

a)  a company which, on the one hand, employs less than 5 000 people and, on the other hand, has an annual turnover not exceeding  €1.5 billion or total balance sheet below €2 million on the other hand. The conditions are based upon the number of employees, turnover and balance sheet total being fixed by decree (see references below);

b)  a company whose securities are admitted to trading on a regulated market or a multilateral trading system that cumulatively meets the following criteria:

- its market capitalisation is under one billion euros;
- no corporation owns more than 25% of its capital;
- it employs less than 5000 people and has an annual turnover not exceeding €1.5 billion or a total balance sheet not exceeding € 2 billion. These thresholds are determined on the basis of the consolidated accounts of the company issuing the securities concerned and, where applicable, those of its subsidiaries.

  • On the purchase date of shares or, for funds, on the date when the fund realises its investments. This implies that companies’ shares that subsequently exceed these thresholds may remain in the PEA-PME.

The PEA-PME may be invested directly in shares and other financial instruments that give access to the capital, issued by listed or not listed SMEs, mainly French and European:

• Shares or investment certificates of companies, and cooperative investment certificates;
• Units of limited liability company or companies holding equivalent status;
• Convertible Bonds  or redeemable in shares, admitted to trading on a regulated market as defined in Articles L. 421-1 and L. 422-1 of the Monetary and Financial Code or on a multilateral trading facility as defined in Articles L. 424- 1 and L. 424-9 of the mentioned Code

• NOTE:
Law n ° 2013-1279 of 29 December 2013 Article 13 II: These provisions apply to rights or warrants or attribution, and the shares referred to in Article L. 228-11 of the Code of trade, which are not included in a share savings plan at 31 December 2013.
• For non-listed shares, the rule is the same as for the original PEA: the holding  by another company may not exceed more than 25% of the capital
 

As in the original PEA, shares of real estate companies shall not be eligible.

It may also include units or shares of unit trusts and mutual funds, invested at 75% in in European SME securities, 2/3 of which must be invested in ‘shares’ and equity securities as defined in the above point, as well as units or shares of “ELTIF” funds meeting certain conditions.

From the 1st of April 2016 until the 31st of March 2017, reinvestments from Funds and SICAV of money market type that will be located  into a PEA-PME, will grant tax exemption under certain conditions (see law 2015-1786 of December 29, 2015 - Art 20).

Conditions of eligibility to the PEA-PME of Issuer’s shares (Article D.221-113-5 & D.221-113-6of the Monetary and Financial Code)

I. – The number of employees, turnover and total balance sheet of the issuing company of the registered shares on the plan, mentioned under 2 of the Article L. 221-32-2, are assessed in the conditions defined in Articles 1, 5 and 6, annexe I to the (EC) Regulation no. 800/2008 of 6 August 2008 of the Commission declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty.
II. – When the major object of the company issuing shares is to maintain holdings in other companies, the respect of the conditions mentioned under I is assessed at the level of this company and each of the companies in which it has holdings.
III. – The accepted data in order to determine the eligibility of the stocks of the issuing company to the plan are those referring to the latest accounting year, filed at the office of the clerk of the Commercial Court or made public by an equivalent means, prior to the date of purchase of the stocks. The data are calculated on a yearly basis.
IV. –The holder of the plan who requests the registration of shares on the plan justifies their eligibility to the fund manager.


 

Useful links

 

List of Issuers that have publicly declared their eligibility to the PEA-PME: Excel File



Warning:
This list is given exclusively for information purposes, and it does not in any way constitute an offer or an incitement to sell or purchase, or an invitation to carry out any financial transaction whatsoever on the securities mentioned therein. The securities mentioned correspond to the companies that have publicly communicated their eligibility for the PEA-PME device and that have notified Euronext of such a communication. Euronext regularly updates the list on the basis of these notifications. This list is not an official list that can be considered validly admissible on the subject. The verification of the effective eligibility of a company to the PEA-PME device is incumbent upon the investor alone. Neither Euronext nor any of its employees or agents may be held responsible for any errors or omissions contained in this list, or any of its updates. This list is not in any way binding upon Euronext or its affiliates, and does not impose any legal or contractual obligation whatsoever upon them.