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The UK’s financial regulator has introduced a series of changes to make it easier and cheaper for companies to raise capital, in a move it says will boost growth and widen access to investment opportunities.
Under the new rules, listed firms will no longer need to publish full prospectuses when issuing additional shares in most cases. The Financial Conduct Authority (FCA) also said the time between publishing a prospectus and launching an initial public offering (IPO) will be cut in half, allowing firms to list faster.
The updated framework is part of a wider push to keep London’s capital markets competitive, especially for smaller and growing companies.
“We’re cutting unnecessary red tape and backing innovation,” said Simon Walls, the FCA’s executive director of markets. “These reforms are about putting more trust in market disclosures and keeping the UK a top destination for investment.”
Easier Access to Capital
One of the headline changes is raising the threshold at which a full prospectus is required for secondary share issues — from 20% to 75% of a company’s existing share capital. The FCA estimates this could save UK firms around £40 million per year in regulatory costs.
For IPOs that involve the public, the required waiting period after prospectus publication has been trimmed from six days to three.
The FCA also announced a single disclosure standard for corporate bonds, covering both large and small issues. The goal is to make it easier for companies to issue bonds in smaller, more manageable sizes that are more accessible for retail investors.
A new public offer platform (POP) has also been launched to help smaller businesses raise larger sums — above £5 million — without the burden of a full prospectus. The platform will operate through authorised firms and function similarly to crowdfunding, but for bigger, private deals.
Earlier in May, the UK Treasury met with the heads of some of the country’s most valuable fintech firms, including Monzo and Revolut, as part of a renewed push to encourage high-profile listings on the London Stock Exchange.
Economic Secretary Emma Reynolds hosted executives from Monzo, Revolut, Clearscore, and OakNorth, alongside London Stock Exchange CEO Dame Julia Hoggett and FCA’s Simon Walls.
The Treasury’s outreach comes amid growing concern over the health of London’s public markets. According to LSE data, 88 companies either delisted or moved their primary listings away from the exchange last year, including names like Flutter and Darktrace. Just 18 firms joined the main market in the same period.
Officials hope that landing a major fintech IPO could help reverse that trend and send a message that London remains a viable home for fast-growing tech firms.
The FCA, meanwhile, promised changes to make the UK listing process more accessible. At a recent IPO Forum, the regulator said it would “put the public back in IPOs”.
Still, bringing high-growth firms like Revolut to London may prove difficult. CEO Nik Storonsky said late last year that a UK listing didn’t make sense compared to the deeper liquidity and lower trading costs of U.S. exchanges.
Others in the sector share similar doubts. Zopa Bank CEO Jaidev Janardana said in April that current conditions were far from ideal for new floats. “The business is ready,” he said, “but the markets need to be ready as well.”
