AIC welcomes proposals to "help capital hungry companies"

The Treasury's review proposes measures to ensure UK capital markets remain globally competitive and fit for purpose over the next 15 to 20 years.

fundraising

The Association of Investment Companies (AIC) has welcomed the Treasury’s publication of the “UK Secondary Capital Raising Review”. The review proposes measures to ensure UK capital markets remain globally competitive and fit for purpose over the next 15 to 20 years.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s heartening to see this review recognising the importance of the UK’s capital markets. These proposals will help capital hungry companies raise funds swiftly and efficiently in the future.

“The plans would cut red tape around fundraising and allow companies whose shares are already traded to raise up to 75% of their market cap without a prospectus. This will be cost-effective for companies and their shareholders without reducing investor protections.

“The changes to pre-emption rights give more flexibility for companies to meet their fundraising needs quickly without unnecessary burdens. We welcome the proposal that retail investors should be as fully involved as possible in all types of secondary raises. Retail investors are a growing audience for investment companies and it’s only fair they have the opportunity to take part in fundraising for existing investment companies as well as IPOs.”

 

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Notes to editors

  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 357 members and the industry has total assets of approximately £258 billion.
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