UK Regulator Proposes Easing Access to Corporate Bonds for Retail Investors
The Financial Conduct Authority plans to simplify the process for retail investors to purchase corporate bonds, aiming to reduce costs and expand access for smaller investors.
Britain's Financial Conduct Authority (FCA) announced on Friday that it is consulting on new proposals to ease the process for retail investors and wealth managers to buy corporate bonds.
The aim is to reduce barriers and costs for companies seeking to raise capital, especially from smaller investors.
The FCA’s plans include introducing a single standard for corporate bond prospectuses, covering all bond sizes, including those below 100,000 pounds ($124,150).
This would allow listed companies to issue bonds in smaller denominations, making them more accessible to a wider range of investors.
FCA’s interim executive director of markets, Simon Walls, stated that the initiative would increase funding for companies while providing investors with more choice.
The FCA also proposes new public offer platforms that could function similarly to crowdfunding platforms, providing alternative routes for companies to raise capital.
The regulator's proposals are part of ongoing efforts to support the UK government’s agenda of boosting economic growth, which has been sluggish in recent years.
Finance Minister Rachel Reeves has called for the removal of regulatory barriers to growth, while FCA chair has cautioned that such a shift could lead to more failures and increased risks to consumers and businesses.
The FCA’s consultation on the proposals is ongoing.
The aim is to reduce barriers and costs for companies seeking to raise capital, especially from smaller investors.
The FCA’s plans include introducing a single standard for corporate bond prospectuses, covering all bond sizes, including those below 100,000 pounds ($124,150).
This would allow listed companies to issue bonds in smaller denominations, making them more accessible to a wider range of investors.
FCA’s interim executive director of markets, Simon Walls, stated that the initiative would increase funding for companies while providing investors with more choice.
The FCA also proposes new public offer platforms that could function similarly to crowdfunding platforms, providing alternative routes for companies to raise capital.
The regulator's proposals are part of ongoing efforts to support the UK government’s agenda of boosting economic growth, which has been sluggish in recent years.
Finance Minister Rachel Reeves has called for the removal of regulatory barriers to growth, while FCA chair has cautioned that such a shift could lead to more failures and increased risks to consumers and businesses.
The FCA’s consultation on the proposals is ongoing.
