Latest news with #SimonWalls
FF News
15-07-2025
- Business
- FF News
Financial Regulator Lowers Costs for Businesses Raising Capital in Support of Growth
Stripped back rules will make it easier for companies to raise the money they need to grow, supporting the UK's leading capital markets. The changes will lower costs for companies and widen access to investment opportunities for consumers. In a suite of measures, the FCA has confirmed: Companies that are already listed won't need to publish lengthy prospectuses to issue more shares, in most cases. The length of time between a prospectus being issued and an initial public offering (IPO) is being halved, helping companies list more quickly on the stock exchange. Companies will be able to issue corporate bonds to retail investors more easily and a new public offer platform will help smaller growth companies raise cash to scale up. Simon Walls, executive director of markets at the FCA, remarked: 'These bold shifts promote innovation, lower costs, and enable a broader investor base for growing businesses. They are the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures. 'Our capital markets are world leading. They're our economic engine, and we want to keep them roaring in support of sustained growth and prosperity for the whole country.' Companies will not be required to publish a prospectus when raising further capital, except in limited circumstances. The threshold for when a prospectus is required for a listed company to raise more shares has increased to 75% of existing share capital, up from its current 20% level. This will reduce costs for UK companies seeking new funds by an estimated £40 million per year, unlocking more capital for growth and investment. IPOs that include the wider public can come to market 3 days after the publication of their prospectus, replacing the previous 6-day window and removing barriers to retail access. The FCA has set out a single disclosure standard for corporate bond prospectuses, covering both large and small bonds. This reduces costs for companies and will make it easier for corporate bonds to be issued in smaller, more investible sizes and support retail investment. Corporate bonds offer a valuable investment opportunity for retail investors and can provide later life income, helping people navigate their financial lives. Public Offer Platforms (POPs) The regulator has set up a new platform for public offers to make it easier for growth companies to get the investment they need and increase opportunities for investors. It will enable companies to make larger offers of shares or bonds without a lengthy prospectus, above £5 million. Offers will be made available to a broad investor base outside of public markets via an authorised firm. This will work similarly to crowdfunding platforms but for larger deals.
Reuters
14-07-2025
- Business
- Reuters
UK financial watchdog rolls out new rules to boost capital markets
LONDON, July 15 (Reuters) - Britain's financial regulator will scrap the need for most listed companies to publish lengthy prospectus documents before issuing new shares as part of its latest efforts to boost the appeal of the country's public markets. After consulting with the industry on the plans last year, the Financial Conduct Authority said on Tuesday that companies already listed on London's markets will only have to draw up a prospectus document if they are raising more than 75% of their existing share capital, up from the existing threshold of 20%. Prospectuses offer details on companies raising capital and include information on areas like financial records and the size of the offering. Stripping back those rules would make it easier for companies to raise the money they need to grow, the FCA said. The change is one of several designed to ease the way that companies can raise money after a slump in activity on Britain's public markets in recent years. 'These bold shifts promote innovation, lower costs, and enable a broader investor base for growing businesses,' said Simon Walls, executive director of markets at the FCA, in a statement. As part of the wider package of reforms, the time between a prospectus being issued and an initial public offering will also be halved to three days in a bid to help companies list more quickly. Firms will be able to issue bonds to retail investors more easily with a single disclosure standard bond prospectus, the FCA said. The regulator also has set up a new platform for public offers, akin to crowdfunding but for larger deals, whereby companies can make larger offers of shares or bonds without a lengthy prospectus above 5 million pounds, it said. The changes were confirmed by the regulator ahead of a speech by Britain's finance minister Rachel Reeves at the Mansion House in London on Tuesday, in which she will task regulators with lowering barriers to businesses seeking to cut their emissions, a government source told Reuters previously. The FCA's latest reforms follow a wider package of changes to the listing rules introduced last July, which it described as the biggest shake up in the rules in 30 years.
Western Telegraph
14-07-2025
- Business
- Western Telegraph
UK cuts stock market red tape in bid to aid Chancellor's growth plans
The financial watchdog confirmed it will cut red tape in the UK's capital markets amid the Chancellor's push to drive growth in the sector through stripping back restrictions. It comes ahead of Rachel Reeves' Mansion House speech to financial bosses, where she is expected to launch a series 'Leeds Reforms' aimed at the financial sector, focusing on a strategy of less onerous rules for firms rather than reduced risk. Over the past year, Ms Reeves has called on regulators to slash red tape in order to help drive the Government's growth agenda, with hopes that accelerated growth can help support its spending plans. Chancellor Rachel Reeves has called on regulators to cut red tape to support economic growth (Chris Furlong/PA) The Financial Conduct Authority (FCA) has confirmed it will introduce a suite of measures to lower costs for UK businesses looking to secure investment. Companies that are already listed on London's stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds in most cases, the FCA said. New rules will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange. It comes amid a dearth of new listings on the stock exchange, while a raft of firms have also opted to switch from London to rival international stock markets. Finance firm Wise said last month that it plans to shift its primary stock listing to the US due to stronger investment opportunities across the Atlantic. These bold shifts promote innovation, lower costs and enable a broader investor base for growing businesses Simon Walls, executive director of markets at the FCA The FCA said companies will also now be able to issue corporate bonds to retail investors more easily, while a new public offer platform will help smaller growth companies raise cash. Simon Walls, executive director of markets at the FCA, said: 'These bold shifts promote innovation, lower costs and enable a broader investor base for growing businesses. They are the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures. 'Our capital markets are world-leading. 'They're our economic engine, and we want to keep them roaring in support of sustained growth and prosperity for the whole country.' On Tuesday, the Chancellor will also reduce restrictions on lenders to allow some banks and building societies to offer more high loan-to-income mortgages to help more people buy a first home.
Yahoo
10-06-2025
- Business
- Yahoo
What you need to know about UK's private stock market Pisces
The Financial Conduct Authority (FCA) confirmed on Tuesday in a joint statement with economic secretary to the Treasury, Emma Reynolds, that its Private Intermittent Securities and Capital Exchange System (Pisces) will launch later this year. Pisces is a new trading platform where shares in private companies can be traded. The FCA said will "open the door to more opportunities for investors, facilitating their access to growth companies." Private companies will be able tap into a broader range of investors and asset managers with exits offered for shareholders to sell up. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares. Simon Walls, executive director of markets at the FCA, said: "This bold design rebalances risk, but it is bold risk-taking that made the UK the leading financial centre it is today. The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again." Read more: Pound dips following weak UK jobs report The government is currently looking to encourage more people to buy UK shares and attract more investment from overseas. Pisces is the latest step in the FCA's wide-ranging reforms to boost growth and competitiveness, and unlock capital investment and liquidity. It comes as a number of companies have recently moved their main listing to the US or been taken over. The platform could also act as a stepping stone for private companies towards an initial public offering (IPO). Dan Coatsworth, investment analyst at AJ Bell, said: "It might act as a stepping stone towards a public stock listing, getting them used to regular financial reporting, transparency as a business, and understanding that a company is run for the best interests of shareholders, not the board of directors." As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. Pisces meets this demand by allowing secondary trading of these shares. Emma Reynolds, economic secretary to the Treasury, said: "Pisces is a great example of industry, regulators and the government working together to go further and faster on innovative reforms to strengthen UK capital markets, supporting economic growth and putting more money in people's pockets as part of our Plan for Change. "I welcome the FCA's announcement, which follows our legislation and opens Pisces to industry. This also builds on our announcements on a stamp taxes on shares exemption for Pisces transactions, and on employees retaining the tax advantages on eligible shares traded." Read more: Stocks: Create your watchlist and portfolio Pisces will not be open to retail investors, unless they are employees of the company issuing the shares. Access will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions. Coatsworth added: 'It could also encourage their staff to develop a saving and investing habit. One of the biggest stumbling blocks for private company share ownership is that staff are often put off by the general inability to sell those shares at regular intervals. "A lot of private companies won't offer the ability for staff to trade shares, meaning some people are stuck owning the equity until the business either lists on a public market or there is an internal event where they can sell down." Read more: UK jobs data increase chances of more Bank of England interest rate cuts Pisces is not set to replace established stock markets like AIM as it will not support capital raising and it will not be open to the public — it is purely a secondary trading market with restrictions on who can buy and sell. Apart from employees of the private company, only institutional investors, high net worth individuals or those deemed to be "sophisticated" investors will be able to buy and sell via Pisces. Share buybacks will not be permitted, at least in the initial stages of the market's life. These factors mean the platform will not be a direct rival to the AIM market. AIM is already seen as a stepping stone for London's main stock market — and the government are hoping this journey can start earlier, with Pisces as a pathway for AIM. The proposal outlines plans to make Pisces share transactions exempt from stamp duty, and stamp duty reserve tax, which puts it in line with similar exemptions for AIM and the Aquis growth market. "Removing stamp duty on all UK shares would be a major step forward as the current rules make the UK less competitive than many other locations such as the US and some European markets. Stamp duty is a cost for investors and can add up for those who place a lot of trades," Coatsworth said. He added: 'Pisces is not going to change the world, but it should be a welcome addition to the UK's investment ecosystem.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
10-06-2025
- Business
- CNA
Britain's regulator says trading to start on private share platform this year
LONDON :Trading on Britain's new share platform for private companies can begin later this year, the financial watchdog said on Tuesday, after finalising rules for a market that regulators and the government hope will bolster the country's capital markets. The Private Intermittent Securities and Capital Exchange System (PISCES) will enable trading of shares in private companies. The first shares should be traded on the platform this year through a "sandbox", which allows regulators to test how it works before they finalise a permanent regime in 2030, the Financial Conduct Authority said. PISCES is designed to connect owners of fledgling unlisted companies who want to sell shares in their businesses with new investors keen to help those firms grow and scale up. "The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again," Simon Walls, the FCA's executive director of markets, said in a statement. Emma Reynolds, the government's economic secretary to the Treasury, welcomed the announcement and said PISCES would boost UK capital markets and support economic growth. Operators such as the London Stock Exchange wishing to run a PISCES platform will have to apply to the FCA. Once approved, they will be able to run intermittent trading events, at which company owners can offer stock for sale at regular intervals, at prices they set, to new shareholders. PISCES could help small companies with limited experience of capital markets get on the radar of cash-rich and supportive investors, without undertaking a full-scale initial public offering. The concept of PISCES, however, has proven a tough sell in some parts of the UK industry. Bankers told Reuters this year that they fear hits to revenues and ultimately being bypassed in a booming market for private capital. Jack Shepherd, a partner with law firm CMS, said PISCES was an innovative attempt to revive the UK's capital markets. "But the question remains whether PISCES addresses a genuine problem in the market, without cannibalising companies that might otherwise have sought a listing on the Main Market or AIM," Shepherd said, referring to Britain's small-cap market. In response to feedback, the FCA said that, under its finalised rules it would, among other things, apply a 25 per cent threshold for identifying major shareholders, reduce the disclosure requirements for PISCES operators and companies, and give companies greater say over who can invest in them.
