UK to Pursue Plans to Cut Corporate Fundraising Paperwork

The UK’s Financial Conduct Authority is pushing ahead with plans to make it easier for companies to tap markets for more funds, acknowledging that the reforms come with risks for investors and companies.

The FCA said on Tuesday that listed companies can raise a further 75% of their equity capital without issuing a prospectus, lifting the threshold from 20%. The FCA estimated it will reduce costs for secondary sales by about £40 million ($53.7 million) per year.