By Huw Jones
LONDON (Reuters) -Britain’s markets watchdog set out proposals on Friday to make it cheaper for companies that are already listed to raise more cash, part of a package of measures to boost London’s post-Brexit wholesale financial sector.
Britain has already begun reforming its financial rules in a bid to compete better with New York and with European Union financial centres, hoping to attract international investment given its cash strapped finances means it has to rely on private capital to fund economic growth.
The Financial Conduct Authority said its latest proposals help strengthen Britain’s capital markets and position “as a global and vibrant financial centre”.
The proposals set up a new Public Offers and Admissions to Trading Regime (POATRs) to replace the existing system of companies publishing a prospectus when they want to sell more shares on the stock exchange.
“Under the proposals, companies will still be required to publish a prospectus when first admitting securities to public markets. However, a prospectus would not be required when a company raises further capital except in limited circumstances,” the FCA said in a statement.
Such streamlining would “significantly” reduce the costs of further capital raisings for companies.
The watchdog said it was also consulting on proposals for a new activity of operating a public offer platform.
“These platforms will offer an alternative route for companies to raise capital outside public markets including from retail investors,” it said.
“The introduction of the platforms should promote scale-up capital raising for smaller companies while ensuring that investors get the right disclosures on the key terms and risks of an investment.”
(Reporting by Huw Jones; Editing by Alex Richardson and Toby Chopra)
