UK extends fundraising reform to private markets
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UK extends fundraising reform to private markets

While welcome, initiatives by the government and financial sector bodies designed to make it easier for companies to raise funds in the UK face a number of obstacles.

Illustration: iStock

The 'State of Equity and Ownership 2024' report published by equity management software vendor Ledgy last month noted that fewer companies listed on the London Stock Exchange in 2023 than at any time since the 2009 financial crisis. But it also found that there was no dominant factor behind this decline, with just 22% of companies surveyed describing the process as ‘too taxing’.

The Financial Conduct Authority has been consulting on proposals to create a more disclosure-based listing regime with a single commercial company category designed to make the UK listing regime more attractive to a wider range of companies.

Previously, companies had to list on an exchange to access greater pools of capital, but … sufficient capital is now available and accessible in private markets
Myles Milston, Globacap

The regulator reckons this change should provide greater opportunities for investors while maintaining high standards of disclosure so shareholders retain the ability to exercise stewardship and other rights to influence company behaviour.

According to Laura Burridge, client initiatives and trading lead at Hargreaves Lansdown, the FCA’s proposals could better reflect the risk appetite the economy needs to achieve growth.


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