The Financial Conduct Authority has set out plans to allow companies to issue bonds in smaller sizes.
It claims having a single standard for corporate bond prospectuses would reduce costs and barriers for companies raising capital.
Simon Walls, interim executive director of markets at the FCA, said: “We’re opening the door for corporates to issue bonds in small sizes so that a wider range of investors can invest in them. That’s more funding for companies, more easily, and more choice for investors too.”
The regulator said more flexible and cheaper capital raising would also help UK listed companies grow.
The FCA is also proposing simplifying the requirements that apply to listed companies when they issue further securities.
It said it would streamline this process by “cutting red tape”.
Walls added: “We want to make sure investors have the information they need to make informed decisions about risk while removing unnecessary costs and widening access.”
The regulator said companies will be able to make larger offers of shares or bonds to a broader investor base outside of public markets.
It comes after the FCA revealed plans for new private stock market, The Private Intermittent Securities and Capital Exchange System (Pisces), where shares in private companies will be bought and sold.
tara.o’connor@ft.com
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