AIC welcomes prospectus rule changes
Investment companies can now issue 100% of share capital without a prospectus.
The Association of Investment Companies (AIC) has welcomed new FCA rules that mean investment companies will be able to raise up to 100% of their existing share capital without needing to issue a prospectus. The current limit is 20%.
The new rules were announced today in the FCA policy statement ‘New rules for the public offers and admissions to trading regime’ (PS25/9). Trading companies will have their limit for share issuance without a prospectus raised from 20% to 75%.
We’re very pleased that the FCA has taken our feedback on board and removed an unnecessary barrier to investment companies raising more capital.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “We’re very pleased that the FCA has taken our feedback on board and removed an unnecessary barrier to investment companies raising more capital. Investment companies invest billions into UK-listed companies, private companies, infrastructure, renewable energy and other UK assets. Existing investment companies have raised £52 billion over the past ten years. The FCA’s recognition of our sector will make it easier and more cost-effective for investment companies to raise additional capital and further support UK growth.”
Investment companies will also be able to issue C shares without issuing a prospectus provided the proceeds are invested in line with their existing policy.
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Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 295 members and the industry has total assets of approximately £262 billion.
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