The Financial Conduct Authority (FCA) has announced a series of innovative proposals aimed at fostering growth and expanding investment opportunities for businesses across the UK. These new measures are designed to make it easier for listed companies to issue corporate bonds, whilst providing investors with more accessible and informed choices.
Simplifying Corporate Bond Issuance
One of the key highlights of the FCA’s proposals is the introduction of a single standard for corporate bond prospectuses. This new standard will cover both large and small bond sizes (less than £100,000), significantly reducing costs and barriers for companies looking to raise capital. By encouraging companies listed on stock exchanges to offer bonds in smaller sizes, the FCA aims to improve investment opportunities for wealth managers and retail investors. This is part of the FCA’s efforts to promote a more competitive and investor-friendly market, as outlined in its 2024/25 business plan.
Streamlining Securities Issuance
The FCA is also proposing to simplify the requirements for listed companies when issuing further securities. By cutting red tape and streamlining the process, the FCA hopes to make capital raising more flexible and cost-effective for UK-listed companies. This will enable businesses to grow and thrive in a competitive market.
New Public Offer Platforms
In a bid to promote scale-up capital raising for smaller companies, the FCA is also proposing to introduce new public offer platforms. These platforms will provide an alternative route for companies to raise capital, including from retail investors, similar to crowdfunding platforms. By setting clear and consistent requirements for firms, the FCA aims to build confidence in these new platforms and enable companies to access a wider pool of investors.
Empowering Investors with Information
The FCA’s proposals emphasize the importance of providing investors with the information they need to make informed decisions about risk. By removing unnecessary costs and widening access, the FCA is committed to ensuring that investors have more choices and better opportunities to invest in growing businesses.
A Vision for the Future
These proposals are part of the FCA’s broader efforts to boost competitiveness in the UK’s financial markets. With initiatives such as the new private stock market, PISCES and the Digital Securities Sandbox, the FCA is paving the way for a more dynamic and innovative financial landscape.
For more information on the FCA’s proposals and how they may affect your business, visit the FCA’s official press release.
How can Complyport help?
Complyport can help firms understand the FCA’s proposals and assess the impact of these changes to your firm. We can support your firm by providing:
- Regulatory Guidance: helping understand the FCA’s expectations and providing expert advice on the relevant regulatory requirements;
- Compliance Documentation: policy and procedure reviews and updates, including drafting new policies, where required;
- Ongoing Support: providing ongoing support to ensure compliance as regulations evolve;
- Training: providing training on the practical requirements and best practices for compliance;
- Suitability Review: reviewing advice in relation to investment offering, providing areas for improvement to continue to be compliant;
- Horizon Scanning: providing regular updates of upcoming regulatory changes or pertinent current themes.
