Improving and widening access to the bond markets for retail investors is on the agenda and it’s been gathering momentum this year. 

Winterflood is finding that retail inclusion in the bond markets through lower denominations, has broad support from stakeholders including the Treasury and the Financial Conduct Authority (FCA). Amending regulation, the regulatory regime is critical in this process, but it will create upsides for all of us who would like access to bonds and for issuers who will have access to a material pool of additional demand. 

Winterflood facilitated a recent round table in May for a number of investment grade companies and investors (wealth managers) who are actively seeking change. Chaired by the Association of Corporate Treasurers (ACT), the event was an opportunity for stakeholders to talk directly with one another and discuss the practicalities of enabling retail involvement.

Continuing the theme of stakeholders’ sharing their thoughts on retail inclusion, this month in the ACT “The Treasurer” magazine (see page 26 onwards), some of the stakeholders who participated in the roundtable outline what the FCA’s proposals will mean for them as bond issuers and investors. Winterflood is pleased to have contributed to this article – in our view it is an honest and open presentation of the positive opportunities and surmountable challenges to getting retail involvement back into the UK’s bond market.

If you would like to discuss the article or topic in more detail, please contact: Michael Smith, CFA, Debt Capital Markets at Winterflood Securities