Bold and brave once-in-a-generation reform - words from the chair of the UK Secondary Capital Raising Review, Mark Austin, which on Monday (following on from the draft report seen by the FT last week, as I discussed in this post) published its recommendations for reforming secondary capital raising in the UK. Whilst a lengthy report, it includes at section 2 a very helpful and brief summary of each of the Review's recommendations, which institutions it considers is responsible for implementing the recommendation, and a suggested time frame for doing so.
The FCA and the market more generally have largely welcomed the recommendations, which are intended to, amongst other things:
- increase the ability for companies listed in the UK to raise small amounts of funds more quickly and cheaply;
- allow additional flexibility for capital hungry companies;
- increase opportunities for retail investors to participate in secondary fundraises; and
- continue the drive to digitisation.
The Pre-Emption Group has, unsurprisingly, also welcomed the Review's call for it to be put on a more formal and transparent footing, and for it to be a central stakeholder in the UK capital markets.
Now over to the various institutions to implement the recommendations earmarked for them...