(Reuters) -Britain’s financial watchdog said on Friday it is seeking to simplify corporate bond prospectuses to boost investment opportunities in the UK, cut red tape, and reduce costs and barriers for companies raising capital.
The government, caught between tight public finances and self-imposed borrowing limits, has been working to revamp strict regulations that have constricted Britain’s vital financial sector and attract more investors to its shaky markets.
The Financial Conduct Authority (FCA) proposed a single standard for corporate bond prospectuses to rally smaller bonds issues, enhancing investment options for wealth managers and retail investors, while promoting more flexible, cost-effective capital growth for UK companies.
“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,” said Simon Walls, interim executive director of markets at the FCA.
($1 = 0.8058 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Savio D’Souza and Sonia Cheema)
