In an effort to help companies raise capital during the ongoing Covid-19 pandemic, the U.K.’s Financial Conduct Authority (FCA) is adopting a number of measures designed to facilitate financing.
The package includes temporary policy interventions to reduce some of the administrative barriers to raising capital in the current environment. The FCA is also encouraging companies to make use of new simplified prospectus rules.
The FCA said that its initiatives “should facilitate new capital being raised as efficiently as possible,” while preserving investor protection.
“Our aim is to help companies to raise money quickly and effectively, while ensuring they respect the needs of investors, both current and future. We think this package strikes that balance,” said Christopher Woolard, interim CEO of the FCA.
The FCA adopted the new measures as guidance without formal consultation, but said it’s open to feedback on ways to support the capital markets.
“The events surrounding the Covid-19 pandemic are unprecedented,” the FCA said. “It is likely that many companies will turn to UK capital markets to raise money to support the recovery to come.”
The regulator said that its response to the crisis “will continue to evolve as the situation develops.”