City watchdog seeks to improve capital markets for companies and investors
The City watchdog today laid out a discussion paper seeking advice on how the UK primary capital markets could be improved for companies seeking funds and investors.
The Financial Conduct Authority (FCA) is canvassing views on whether primary equity markets provide enough capital for company growth, particular in the early-stage science and technology sector.
Read more: The FCA says Tracey McDermott won't share insider information in new role
The body is also investigating whether measures could be introduced to support greater retail investor participation in UK debt markets.
“The FCA has an overarching strategic objective of ensuring markets function well, and a key part of that is ensuring the UK’s primary markets remain effective,” said FCA chief executive Andrew Bailey.
Read more: Spreadbetting lobby group plots bid to appease FCA amid industry crackdown
“This review considers some important questions about the primary markets, and some potential enhancements, to ensure they continue to meet the needs of investors and issuers effectively.”
As part of its 2016/17 business plan, the watchdog is seeking to achieve “an increase in the efficiency and effectiveness of primary markets to ensure they meet the needs of issuers and investors”.