UK firms will be able to raise cash and list on London stock markets more quickly and easily due to plans to tear up regulations.
The financial watchdog confirmed it will cut red tape in the UK’s capital markets amid the Chancellor’s push to drive growth in the sector through stripping back restrictions.
It comes ahead of Rachel Reeves’ Mansion House speech to financial bosses, where she is expected to launch a series “Leeds Reforms” aimed at the financial sector, focusing on a strategy of less onerous rules for firms rather than reduced risk.
Over the past year, Ms Reeves has called on regulators to slash red tape in order to help drive the Government’s growth agenda, with hopes that accelerated growth can help support its spending plans.
The Financial Conduct Authority (FCA) has confirmed it will introduce a suite of measures to lower costs for UK businesses looking to secure investment.
Companies that are already listed on London’s stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds in most cases, the FCA said.
New rules will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange.
It comes amid a dearth of new listings on the stock exchange, while a raft of firms have also opted to switch from London to rival international stock markets.
Finance firm Wise said last month that it plans to shift its primary stock listing to the US due to stronger investment opportunities across the Atlantic.
The FCA said companies will also now be able to issue corporate bonds to retail investors more easily, while a new public offer platform will help smaller growth companies raise cash.
Simon Walls, executive director of markets at the FCA, said: “These bold shifts promote innovation, lower costs and enable a broader investor base for growing businesses. They are the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures.
“Our capital markets are world-leading.
“They’re our economic engine, and we want to keep them roaring in support of sustained growth and prosperity for the whole country.”
On Tuesday, the Chancellor will also reduce restrictions on lenders to allow some banks and building societies to offer more high loan-to-income mortgages to help more people buy a first home.