Britain eases rules to speed up company capital raising
FILE PHOTO: Traders looks at financial information on computer screens on the IG Index trading floor in London, Britain February 6, 2018. REUTERS/Simon Dawson/File Photo
April 8, 2020
LONDON (Reuters) – Britain’s markets watchdog set out temporary measures on Wednesday to help companies raise cash quickly to get through the epidemic that has shuttered much of the economy.
The Financial Conduct Authority (FCA) said it was likely that many companies will turn to capital markets to raise money to support the recovery to come.
Companies can apply to the regulator for waivers from having to hold a general meeting to obtain shareholder approval for a transaction, the FCA said.
It also encourages companies to make use of the new simplified prospectus that was introduced last year to speed things up.
“Our aim is to help companies to raise money quickly and effectively, while ensuring they respect the needs of investors, both current and future,” said Christopher Woolard, Interim Chief Executive of the FCA.
(Reporting by Huw Jones; Editing by Dhara Ranasinghe)