On 19 July 2022 the Secondary Capital Raising Review (Review) was published, setting out a series of recommendations to the Government, the FCA and the Pre-Emption Group (PEG) to promote the ability of UK companies to finance their businesses through public capital markets.
The Review was initially commissioned by the Government in October 2021. Mark Austin was appointed as independent chair, tasked with making recommendations on how secondary capital raising processes by companies already listed could be made quicker, flexible, more dynamic and more inclusive of retail investors.
Some of the key recommendations include:
Maintaining and enhancing the UK pre-emption regime
Reducing regulatory involvement in larger fundraisings and reconsider the FCA’s approach to working capital statements.
Making existing fundraising structures quicker and cheaper by making changes to the Companies Act
Increasing the ability of companies to raise smaller amounts of funds quickly and cheaply
Creating a task force to drive digitisation in market infrastructure
The FCA has welcomed the Review findings which complement its ongoing Primary Markets Effectiveness Review. It will continue to work closely with the Government and industry stakeholders in taking forward the relevant recommendations specific to the regulator
To read a copy of the full UK Secondary Capital Raising Review, please click here