Winterflood supports the changes as proposed in the Financial Conduct Authority’s recent consultation paper: CP24/12: Consultation on the new Public Offers and Admission to Trading Regulations regime (POATRs). We intend to respond to the consultation, recognising the need to open investment options to the retail market and remove barriers by simplifying capital raising on UK listed markets. We commend the FCA for proposing tangible changes that will help to make this a reality.

Retail inclusion is at the core of the Winterflood ethos, and we champion inclusivity for all, from institutional to private investors. 

Proposed changes most impactful to retail inclusion:

  1. Prospectus requirements change and deal cap lifted – removing the requirement for a prospectus to be published when companies publicly offer securities in excess of €8 million to retail investors.
  2. Raising secondary fundraising thresholds – raising the threshold where a prospectus is required from 20% to 75%, offering more flexibility during fundraisings.
  3. Mandatory initial admission prospectus for Primary MTFs – giving issuers the ability to include retail investor participation in all primary offers as well as follow on raises without a limit. 
  4. Reducing the six-day rule – shortening the six-day rule to three days (the length of time a prospectus needs to be publicly available before the public offer ends).

We feel that these changes will provide greater flexibility for issuers when fundraising and will enable retail investors to play a more important role in the investing space.

 

To discuss this topic in more detail, contact Joe Winkley, Director & Head of Corporate Services or Andrew Stancliffe, Head of Execution Services at Winterflood Securities Limited.